Fuel Price Adjustment in Madagascar

As of this weekend, fuel prices in Madagascar have decreased. Diesel now costs 4,760 ariary (1.02 USD) per liter, representing a 140-ariary reduction from the previous price of 4,900 ariary. Similarly, the price of gasoline has dropped by 200 ariary, from 5,900 to 5,700 ariary per liter. However, the price of kerosene remains unchanged at 2,430 ariary.

This price revision is part of a new automatic adjustment system that came into effect on the night of January 17, 2025. The government announced the measure during a press conference held in Behoririka on January 18.

Jean Baptiste Olivier, Minister of Energy and Hydrocarbons, explained: “From now on, fuel prices in Madagascar will be influenced by fluctuations in international market prices and the exchange rate. As an imported product, these factors impact fuel costs.“

Meanwhile, Lova Hasinirina Ranoromaro, spokesperson for the presidency, highlighted the reform’s goals: “This new approach aims to provide greater flexibility and transparency in price setting. In the future, fuel prices will be adjusted based on supply and demand. This will contribute to the country’s economic stability while reducing government subsidies that place a significant burden on the state budget.” She added that the International Monetary Fund (IMF) supports this reform, emphasizing the need to eliminate subsidies to avoid a financial crisis.