The Malagasy government is preparing a comprehensive reform of the downstream oil sector to sustainably secure fuel supplies, strengthen competition, and reduce disparities in access to petroleum products across different regions of the country. Led by the Ministry of Energy and Hydrocarbons, this reform also aims to strengthen sector resilience against potential logistical disruptions and external shocks.
The gradual creation of national strategic reserves constitutes one of the main measures envisaged. The objective is to maintain a fuel reserve capable of addressing supply disruptions and international market fluctuations. This reserve should help better protect the national economy against the consequences of potential crises affecting imports.
The government also plans to develop local refining capacity. Technical studies will be conducted to identify opportunities for establishing modern refining units. This approach aims notably to better valorize national petroleum resources, such as the Tsimiroro deposits, while progressively reducing dependence on imports of finished petroleum products. Such developments could also limit pressure on foreign currency needed to finance imports.
Regarding competition, the reform provides for progressive opening of the entire petroleum chain to any operator meeting legal, regulatory, and technical requirements. Imports, transport, storage, and distribution will all be affected. Priority investment zones will also be identified to improve fuel access in remote regions and districts.
Modernization of regulation is also among priorities. The government plans notably the implementation of remote tank gauging to ensure better monitoring of available volumes, as well as digitalization of controls. The autonomy of the Malagasy Office of Hydrocarbons (OMH) should also be strengthened to improve sector regulation.
Furthermore, the reform integrates progressive development of alternative fuels and strengthening of safety and environmental protection standards. Through these various measures, the State intends to establish a more open, better-regulated petroleum sector capable of meeting the needs of the entire territory.
Lucia Rabarijaona