Knowledge Note

When oil prices started rising in 2010, the Malagasy government introduced fuel subsidies to keep energy prices low.

In 2015, as global oil prices fell, fuel subsidies were removed. The government is now focused on sustaining the removal of these subsidies through the Energy Sector Management Assistance Program (ESMAP) funded technical assistance for restructuring fuel pricing and for developing a strategy to communicate the rationale and approach for revised pricing of fuels.

ESMAP is also supporting the policy dialogue on mitigating measures to protect the poor from the impact of fluctuating prices.