An agreement between the State and oil operators aims to secure diesel supply while awaiting the arrival of upcoming shipments. A collaboration agreement was signed yesterday, August 27, at the Energy Ministry between the State Procurement of Madagascar and four downstream petroleum companies. The agreement covers the provision of diesel volumes to ensure continued supply to the Malagasy market until the next shipments arrive.
Galana Distribution Pétrolière, Jovena, TotalEnergies Madagascar, and Vivo Energy Madagascar are the four companies involved in this agreement. Two operations were agreed upon. The first involves a loan of 20 million liters of diesel from the State Procurement of Madagascar to oil operators. The second concerns the sale of 40 million liters of diesel from the public company to the petroleum sector.
The 20 million liters represent approximately one week of consumption, given the increased demand during peak season. This volume should allow distributors to maintain their stocks and ensure distribution across the entire territory.
This situation follows the simultaneous arrival of two ships at the Port of Toamasina. One carried the State Procurement of Madagascar's cargo, while the other was chartered by oil operators. The priority unloading of the State's vessel prevented the second from immediately proceeding with its operations. To avoid any supply disruption, sector players decided to implement this agreement.
The vessel chartered by industry professionals is expected to transport approximately 50 kilotonnes of fuel. While awaiting its unloading, cooperation with the State Procurement of Madagascar should cover market needs. The principle of collaboration between the State and oil operators is not new. Both parties can support each other when either's stocks are insufficient.
According to Marc Renauld, General Director of Galana Madagascar and President of the Petroleum Group of Madagascar, this approach aims primarily to guarantee product availability. The diesel imported by the State Procurement of Madagascar meets quality requirements, particularly regarding sulfur content.
For consumers, no impact on pump prices is announced. Sector officials indicate that rates remain unchanged. The Malagasy Office of Hydrocarbons will continue monitoring market developments and ensuring competition compliance.
Furthermore, a ship carrying gasoline is expected in early September. The stated objective remains to maintain regular supply and promote competition that could lead to better price alignment with market realities. Cooperation between the State Procurement of Madagascar and distributors thus fits within a market security logic, as authorities seek to prevent any fuel supply disruption on the territory.