Fuel consumer price: the end of promotion but not a rise

It is not consumer price rise but a return to normal situation after the end of a promotion period. The general manager of the Malagasy Fuel Office (OMH) has endorsed the role of oil distributors’ attorney. According to Harivelo Andrianarahinjaka, prices have simply returned to their exact level of July 2009. 

“The fuel distributors had accepted to lower the sale prices in order to re-launch the consumption in an end of crisis context”, recalled the CEO of the OMH. This moment of grace for the drivers has ended with vacations. Fortunately for households’ budget, the rise is relatively weak, merely 2.3% for the standard fuel which is back to 2680 ariary per litre.  

The latest fluctuating prices have nothing to do with crude oil courses on the international market. Harivelo Andrianarahinjaka is welcoming the oil distributors led initiative, namely the implementation of a promotional campaign despite the lack of any meaningful plummeting barrel prices 

This polished speech should be easing the transitional government’s pressure on the sector’s operators when the consumer prices rose. The measure was  far too unpopular for a regime that promised cheap fuel. 

In order to reassure a public opinion concerned about a national oil crisis if the bridge is broken between the international community and Madagascar, the CEO of the OMH is saying that the country has regular stocks, enough for 40 days. “There is nothing to fear on the short term, the stocks are sufficient, the import is continuing”, he said.  A cargo is expected in Toamasina for this month of September. The OMH is especially standing by a grouped imported quantity by next October. 

The bio-fuel project is currently on try. The production process has been mastered, the mixture of alcohol and fuel not being a secret anymore. There’s even better, a Malagasy searcher named Solofo Jonis finalized a process to mix gas and alcohol by cooling them at -25°C. It is leading to the production of E10 to E20 types ethanol, or up to 20% of alcohol in the mixture. In Moramanga, the old Renault 12 used for the test recovered a second youth by being powered with bio fuel. 

The OMH is delighted with this progress. “We still have to define the legal settings and to control the whole production line up to the marketing”, tampered Harivelo Andrianarahinjaka. Finding low quality and potentially dangerous fuel on the market is completely unthinkable. The OMH is advising this green energy for domestic use in replacement of coal. Fields of jatropha and sugar cane are currently exploited to be feeding the future biofuel industry in Madagascar.