During a Cabinet meeting on Friday, the Executive adopted a decree requisitioning Jirama. This regulatory act allows the company to purchase fuel through a state-authorized entity, in accordance with the new downstream petroleum law. The requisition period is set for six months, beginning in August, according to sources familiar with the matter.
The decree was adopted alongside a new fifteen-day energy emergency period declaration. "A decree requisitioning Jirama was adopted so that it may, in accordance with the emergency strategy, undertake all necessary steps for negotiations relating to the purchase and supply of diesel for its power plants over six months," the Cabinet communiqué stated.
Radonirina Lucas Rabearimanga, Minister of Energy and Hydrocarbons, announced in Toamasina on Friday that two ships would deliver hydrocarbons on August 12, with one carrying diesel destined for Jirama. "We have imported diesel that will cover Jirama's consumption for several months," he said.
The measure is designed to secure fuel supply and prevent power cuts during the dry season. The Executive determined that it must take all necessary measures to prevent fuel supply disruptions to Jirama, which could affect public service continuity and national interests.
The requisition also represents the first implementation of the new downstream petroleum law, declared constitutional by the Constitutional Court on August 3. This law allows the state to directly import hydrocarbons through an authorized entity, aiming to secure fuel at more favorable rates.
Jirama will conclude a fuel supply and purchase contract with the state-authorized importing entity. While Jirama holds a fuel storage license, it lacks the infrastructure to store the volume being delivered. The Constitutional Court confirmed that articles 11 and 12 of the petroleum law guarantee "free and non-discriminatory access rights to essential infrastructure" for the authorized entity.