Madagascar a day away from an oil crisis?

Gas station managers announced that they would no more order anything if they had to keep away from profits. “We are not striking “, hastily outlined Martin Rakotozafy, the president of the Professional Union of Free Gas Station Managers ( locally known as GPGLSS). Distribution companies are for the time being the ones missing out on their profits. “They are reviewing their incentives to get a move on, part of which the retailers´profit margin “, he explained. Gas station managers are waving the boycott as a weapon while deniying leading any strike. 

The GPGLSS got support from the minister of Mining resources. Mamy Ratovomalala insured retailers that their profit margin would not be affected. Is any alliance against oil distribution companies being prepared? Unlikely, since the GPLSS rather supported the concerned companies when meeting with the minister. Martin Rakotozafy reported that the union proposed a lowering of state taxes on oil. 

The amount of these taxes defined in percentage increases with the basic price. As the barrel´s price reached 120 dollars, the ATV and the various other taxes increased. 

IThe state is thereupon being invited to contribute to keep a stable consuming price, which is not yet a done deal. “The reduction of oil taxes is not in sight since only a parliamentary decision is likely to bring any change to the law “, argued the ministry of Mining resources. 

According to minister Mamy Ratovomalala” talks are being carried on even between the public power and the distribution companies “. The oil companies shot however first when challenging the ministerial decision in court. 

The state council favored… the state, in accordance with the law. The problem is, the concerned measure cannot be applied beyond six months. The low priced oil are likely to be sold out in April 2011. Are the distribution companies bound to sell without profits during three months. 

Madagascar cannot escape the international market´s price rise, conceded Mamy Ratovomalala. The minister insured however, that there will be neither shortage nor gas station strike. “There are undisputedly people willing to spread false news out “, he added. 

Minister Ratovomalala emphasized later on that fuel consuming prices were kept in control by the state. Any rise would cause a general inflation. Transportation companies would however enjoy exceptional conditions. Without any real solutions in hand, the minister would have to tame the popular discontent likely to be caused by such exceptional measures. Enjoy!