Omanghana
Madagascar has ended a 25-year private-sector monopoly over fuel imports by launching a government-led procurement system aimed at stabilizing the country’s struggling electricity supply.
The policy took effect with the arrival of the tanker Sunda 1 at the port of Toamasina. The vessel, which travelled from China, delivered the first diesel shipment purchased directly under the new state-controlled arrangement.
The fuel has been allocated to Jirama, Madagascar’s state-owned electricity and water utility. Authorities say the consignment will supply the company’s power plants and help maintain electricity generation for several months.
For about a quarter of a century, a small group of private companies controlled national petroleum import tenders. The arrangement included major international operators such as TotalEnergies SE.
The government’s decision does not completely remove private companies from Madagascar’s downstream petroleum industry. Instead, it ends their exclusive control over the fuel procurement process and allows the state to buy strategic supplies directly.
The transition was enabled by Law No. 2026-006, which was recently validated by Madagascar’s High Constitutional Court. The legislation authorizes a state-designated entity to oversee and coordinate fuel imports.
Officials believe direct state participation will improve supply security, strengthen oversight and reduce the risk of shortages affecting essential services.
The intervention follows a prolonged electricity crisis that disrupted households and businesses across the country in late 2025. Persistent outages weakened commercial activity, intensified public frustration and became a major source of the civil unrest that ultimately contributed to a coup.
By securing diesel for Jirama, the authorities hope to prevent another power crisis and give the utility greater certainty over fuel availability.
Jirama has struggled for years with ageing infrastructure, financial pressure and dependence on expensive fuel-powered electricity generation. Interruptions in petroleum supplies therefore have an immediate effect on the national grid.
Private petroleum companies will continue importing products and participating in storage, distribution and other downstream operations. A separate commercial tanker carrying petroleum products ordered by private operators reportedly arrived around the same period as the state shipment.
The government is also holding discussions with industry participants at the Galana storage facility in Toamasina. The terminal is owned by Rubis Énergie SAS and forms an important part of Madagascar’s fuel-storage infrastructure.
The talks are intended to coordinate the handling and allocation of government-purchased diesel alongside supplies brought into the country by private companies.
The new system will test the government’s ability to manage procurement transparently, maintain adequate reserves and distribute fuel without disrupting the existing supply chain.
If successfully implemented, the policy could provide Madagascar with greater control over strategic energy supplies while preserving a role for private operators in the broader petroleum market.
Source: Omanghana
