Consumers fear further increases

Like other essential goods, the cost of gas has also risen. Consumers recently discovered the new gas prices, with a hike that is quite significant.

At Vitogaz, the price of a 12.5 kg gas cylinder has increased from 86,600 ariary to 91,500 ariary (19.60 USD), while other distributors are selling it at 102,000 ariary. In 2021, an agreement was signed between the Ministry of Environment, the Ministry of Economy and Finance, and the Malagasy Butane Committee (CMB) to promote green energy, improve household well-being, and combat deforestation.

As a result, the tax on butane gas was reduced from 20% to 5%, although 97% of households continue to rely on wood or charcoal, consuming 500,000 tons annually. The agreement, which was renewable after one year, contributed to a 9 % reduction in butane costs.

This price increase comes just before the decision to raise the VAT on butane gas by 5 %, bringing it to 10 %. Consequently, consumers fear an additional rise in the price of gas cylinders. However, according to the proposal by the Minister of Economy and Finance, this should not happen.