Domestic
Dr Herinjatovo Aimé Ramiarison: Maintaining Current Fuel Prices Until December
Madagascar must protect its economy while meeting indicators agreed under programs supported by the IMF's Extended Credit Facility and Resilience and Sustainability Facility, according to Minister Dr Ramiarison. An IMF study shows that one dollar invested in conflict prevention can generate up to 103 dollars in savings in countries that have recently experienced violence. This finding supports Madagascar's case for temporarily maintaining pump prices. The government plans to keep fuel prices at the pump unchanged until the end of December 2026. The stated objective is to avoid a sharp increase that would immediately impact transport, essential goods, production costs, and purchasing power. Questioned at the presentation of Banky Foiben'i Madagasikara's monetary policy report at Carlton Anosy, Economy and Finance Minister Dr Herinjatovo Aimé Ramiarison emphasized the temporary nature of this approach. This is not about abandoning the adjustment mechanism, but rather rescheduling it, with a gradual return to market prices starting January 2027. The matter remains under discussion with the International Monetary Fund as part of talks on Madagascar's Economic Program supported by the Extended Credit Facility and the Resilience and Sustainability Facility. According to the minister, the IMF has not rejected the approach in principle. However, the institution is requesting additional details on the measure's cost, its financing, and the sustainability of compensatory mechanisms. The Malagasy government remains convinced of the soundness of this decision and the relevance of arguments presented to the International Monetary Fund. Dialogue continues between the two parties. To absorb this temporary effort, the State is counting on rationalizing certain expenditures, mobilizing additional revenue, and accelerating the energy transition. Improving Jirama and developing renewable energy should notably reduce dependence on thermal power plants. The goal is thus to protect households and the economy today while preparing a gradual and sustainable exit starting in 2027.
Source: Midi Madagasikara