Oil prices falling : good news for Madagascar

The oil prices continue to fall on the global market. This trend could reduce the cost of fuel in Madagascar.

Global prices falling

According to the World Bank, the price of a barrel of Brent should settle on average to 68 dollars this year. It would then continue to decline until 60 dollars and 2026. This drop in prices is explained by a global oil surplus. It results from sharply increasing production combined with weaker global demand.

Report says trade tensions and economic uncertainties are holding back demand. This contributed to the decline in oil prices.. According to the World Bank, oil markets could remain volatile. Despite this instability, oil prices continue to fall. The general trend remains towards a decrease in prices in the coming years.

This development could lead to a continued decline in oil prices. Producing countries could be forced to reduce their production to limit the fall in income. It could also influence investments in the energy sector on a global scale.

The repercussions for Madagascar

For Madagascar, this drop in oil prices is an opportunity to reduce the energy bill. It could directly reduce the cost of fuel at the pump. However, the World Bank predicts that the price of a barrel could go back to 65 $.
This possibility shows that prices remain sensitive to developments in the world market..
The decline forecasts are therefore not guaranteed and may fluctuate depending on the situation..

In Madagascar, the fuel prices are now adjusted each month. This mechanism directly tracks variations in oil prices on world markets. But fuel prices in Madagascar do not only depend on world prices.. The exchange rate between the ariary and the dollar American also influences their level. He can amplifier or reduce the impact of falling oil prices for consumers.

Even though oil prices are generally falling, their evolution remains to be monitored.
Consumers must monitor local fluctuations to measure the real impact on fuel costs. For the government and economic actors, this drop in oil prices offers an opportunity. It could help stabilize energy costs and support purchasing power.

Stay connected with us on our page COCONUT LODGE MAJUNGA so you don't miss any of our news.

By #CocoLodgeMajunga

To date, we are a true one-stop shop. One-Stop-Shop », we offer the possibility to all our clients to carry out their entire project by being their unique interface in one and the same place :

• One hôtel★★★ with 18 spacious rooms with all comfort and a villa of 5 comfortable rooms with swimming pool, pétanque court, ping-pong, billiards and housekeeping staff available.
• One gourmet restaurant offering Malagasy cuisine, French, Lebanese, of the pizza, its partner, spring rolls and seafood specialties,
• A pool bar with cocktails, "tsakitsaky", pancakes and waffles available at any time.
• An event and conference organizer with 5 meeting rooms can receive up to 100 people. In addition, we can host themed lunches/dinners, engagement, wedding, anniversary, …Even a bachelor/bachelorette party, or a marriage proposal, …
• A travel and tourism services company (License C),
• A delivery company for the entire restaurant menu throughout Majunga and the surrounding region.
• One tour operator (B license), organizing excursions in the Boeny region and its surroundings (Anjohibe Cave, Ankarafantsika National Park, Katsepy, workout, sacred lake, Antsanitia, Tsingy de Namoroka, …)
• A 4×4 rental company and quads (with valid liability insurance) with qualified driver guides. We can ensure your transfers throughout Madagascar. For example from Antananarivo airport to Majunga, from Nosy Be to Majunga, even between Antsiranana and Majunga.