Oil supply: a rise of price is inevitable

Oil supplying companies argued that a new rise of price at the pumps is inevitable. It is then unrealistic to think that the current price could be maintained. “If the government continues to block the oil price at the pumps, we can expect a serious shortage. No oil company would accept to import any longer”. Such was the reaction of the majority of oil industry actors, following the declaration of Andry Rajoelina during the last Cabinet Meeting. Indeed, the HAT President has firmly ordered the minister of Hydrocarbons “to establish a formal agreement between the Ministry and oil companies so that there will no longer be new decisions concerning oil prices at the pumps”.

Apparently, the gap is between 600 and 700 Ariary. Consumers should therefore expect a further increase in the near future. Still according oil companies, no timetable has yet been set for the price rise. And “we must not forget that we are currently witnessing a speculation of oil products worldwide. If ever the oil prices on the international market are skyrocketing in the coming weeks, the domestic price will surely increase,” said a local oil operator.