Sustaining the Removal of Fuel Price Subsidies | Madagascar
Madagascar, home to nearly 25 million people, is among the poorest countries in the world. Close to eighty percent of the population lives below the poverty line, and only fourteen percent has access to electricity. The majority of people use inefficient energy sources such as kerosene, firewood or charcoal which are also polluting and unsafe.
When oil prices started rising in 2010, the Malagasy government introduced fuel subsidies to keep energy prices low. When global oil prices fell in 2015, fuel subsidies were removed. The government is now focused on sustaining effective energy subsidy reform. ESMAP-funded technical assistance supported timely advisory services to the government related to the removal of fuel subsidies and for restructuring fuel pricing, development of a strategy to communicate the rationale and approach for revised pricing of fuels, and consultations with key stakeholders on mitigating measures.
ESMAP is also supporting the policy dialogue on mitigating measures to protect the poor from the impact of fluctuating prices.
ESMAP. 2018. Energy Subsidy Reform Facility Country Brief : Madagascar (English). ESMAP brief. Washington, D.C. : World Bank Group.
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