Rising fuel prices: the transportation sector is shaken

Owning series of public transportation vehicles is no more a pledge for prosperity, the economic downturn is to be blamed for that. This rise of fuel prices could not have occurred at a worst moment. “With 300 ariary more per liter of fuel, the profit margin is more that threatened because we use up to 30 liters of diesel per day, that makes some 9000 ariary in additional expense”, complained R. Lanto, minibus driver. He explained that  the incoming school holidays are going to increase losses because there will be less passengers. “This situation has a negative impact on service quality, we can no more drive without being filled up, many more ones are going to have to wait for longer”, added the driver.  

The situation is in no way better for provincial transporters. Companies linking Antananarivo and Toamasina decided to reinstate the 18 000 ariary normal price. It has previously been reduced to 16 000 ariary, because of the sharp decrease in travelers. “Business was already far from juicy with promotional price, now we are reduced to expect people to make holiday trips, and still this is not to be held for granted”, conceded Edouard, a teller. This rise is a recovery of the last official price. Everybody does not like it. “We failed from getting more travelers despite the lower prices, true prices must be reinstated, a ticket must cost 22 000 ariary “, protested a transporter opposed to the companies’ decision.   

For taxi drivers, it is one more bad luck chance. Merlin doesn’t move from the station no more, and expects for an eluding customer. “In three days, the number of my runs dropped from ten to six because I can no more wander and expect to find a customer underway”, he explained. According to this cab driver with 15 years of experience, the most disastrous thing is the effect of the announcement of a pending fuel price rise. “They immediately figure out that taxicabs are going to rise price by the next minute, whereas asking for a price and pulling back because it is too expensive, happens to be quite delicate”, he added. As being his own car’s owner, he confided that his profit margin dropped to 12 000 ariary per working day, it would have turned to losses, had he still have to drive someone else’s  taxi cab.  

In 2008, the state had decided to subsidize in order to avoid a general price rise. This solution is now off the point for lack of funds. Transporters consequently urged the state to give up some taxes. Such an idea is certainly rich in options but it would come up to decrease state money in a very difficult period, as foreign financial supports have been withdrawn. The HAT Finance minister already announced that new fiscal advantages are to be potentially granted to fuel companies.