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The state and the tanker group eventually resolved the cross-debt through a new memorandum of understanding.
The oil company is demanding repayment of a debt of 1,444 ARI for the supply of fuel to Jirama. For its part, the state is threatening to impose on the oil company the outstanding road maintenance fee (RER) charges. Alili’s debt is estimated to exceed 419 billion.
As part of the debt relief resolution, the oil companies committed to comply with their tax obligations: payment of duties and taxes on oil products, royalties to the Ministry of Environment, contributions to the development of the sector (RDS), contributions to the Road Fund and fees (Malagasy Hydrocarbons Office).
The $658 million disbursed by the IMF is regulated under certain conditions within the framework of the Extended Credit Facility (ECF) and the FRD (Resilience and Sustainable Development Fund (2024) Priority) (part of the automatic adjustment mechanism of fuel prices. by 2025), which aims to offset public debt through a gradual and monitored increase in fuel prices and the reality of prices at the gas pump.
According to a statement by the Minister of Economy and Finance, the state’s debt to oil companies amounted to Ariary 72 billion by the end of May 2024. In addition to this, the state must pay Ariary 39 billion in outstanding debts to oil companies in the 2023 fiscal year.
Minister Rindra Hasimbelo Rabarinirinarison explained that the multi-billion dollar shortfall in tanker liabilities is mainly due to the difference between the actual price and the displayed price of fuel. The state has also included these amounts in the revised Finance Law of 2024.
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