Madagascar: The Critical Level Of Fuel Stocks Reached

12 years ago - 16 October 2012, lexpress.mu

Gradual decline. Stocks of petroleum products Madagascar settle below the minimum required twenty-one days. That is the conclusion of the Malagasy Office of Hydrocarbons, conveyed in his report on the oil market for the period from August to September end.

This is a situation caused by an irregularity in imports. "In recent months, the balance between supply and consumption has changed. The frequency of imports is more regular and import volumes vary significantly from month to month. Stocks are called more frequently to meet the needs of the market not covered by imports, "the report notes.

"This has a structural impact on the balance of the balance between supply and stock market," says the report.

Users often face temporary shortages in certain stations. "Always be prepared. We can not be like before, when one begins to work with a fairly limited amount of fuel. We can not ever be able to buy services in two successive stations. We ran out of diesel fuel, passengers disembarked and went on another vehicle. The receiver was forced to reimburse, "notes Ndriana Rakotondrabe, a taxi driver.

Inventory reduction affects more deposits Highlands. According to the explanations provided by the OMH, supply depots Highlands is continuous, daily road and rail. It is thus easier to make up fairly quickly inventory levels in the localities of the Highlands, but they also become exhausted very quickly because of high consumption.

Priorities

In addition, retailers have prioritized supply and coastal deposits at the expense of deposits Highlands whose stock level is very low. Since the second quarter of 2011, the stocks of deposits Highlands are in a critical situation.

Level remains permanently below the minimum required. In coastal deposits, the level of stocks is always maintained above the minimum required.

But during the year 2011, it declined gradually each month. In 2012, a slight recovery in stocks is noted, but the level is not constant. Apart from the problems on imports, OMH suggests applying the new clearance system for each imported products as a source of delay in the provision of products. In 2012, retailers have abandoned the system of import cargoes grouped. The last batch import back in February 2012.

For diesel for example, stocks at the Terminal Toamasina can not be recovered to levels consistent and adequate as before 50 000-60 000 m3 against 30 000 - 20 000 m3 now.