Price freeze at the pump for 2024
An automatic fuel price adjustment system at the pump is planned for implementation starting next year. The International Monetary Fund (IMF) recommends that this adjustment be limited to 200 ariary (0.045 USD) per liter, both upwards and downwards.
Along with the official government announcement of adopting the Extended Credit Facility (ECF), the Minister of Energy and Hydrocarbons confirmed that fuel prices will not change until the end of the year.
According to Minister Olivier Jean-Baptiste, the price administration decree for the second half of this year maintains the price freeze until the end of 2024. In other words, diesel costs 4,900 ariary (1.1 USD), gasoline 5,900 ariary (1.3 USD), and kerosene 2,430 ariary (0.54 USD).
However, the authorities intend to gradually move towards a realistic price at the pump. Furthermore, the IMF is calling for the complete removal of fuel price subsidies under the ECF. « This measure is expected to be applied by April 2026, » highlighted Benlamine Mokhtar, IMF resident representative in Madagascar. According to Minister Olivier Jean-Baptiste, the most subsidized fuel is kerosene, with a significant difference between the pump price (2,430 ariary) and the actual market cost.
Thus, future revisions of kerosene prices will be made gradually, to protect households, particularly in rural areas, who depend on this product as a source of energy.
