Tunisia: Energy Prices Soar In Bid to Reduce Subsidies

Published September 20th, 2022 - 10:26 GMT
Tunisia: Energy Prices Soar In Bid to Reduce Subsidies
Source: Shutterstock
Tunisia said on Saturday it is raising the price of cooking gas cylinders by 14% and fuel by 3% as part of a plan to reduce energy subsidies, a policy change wanted by the country’s international lenders.

The energy ministry said the cooking gas price will increase to 8.800 dinars from 7.750 dinars, in the first raise in 12 years.

The petrol price will be raised on Tuesday to 2.400 dinars per litre from 2.330 dinars, a three percent increase, the ministry said in a statement.

Tunisia gas
Source: Twitter

The rise in fuel prices is the fourth this year. Tunisia expects its budget deficit will expand to 9.7% of gross domestic product in 2022, up from a previously expected 6.7%, due to the stronger dollar and a sharp increase in grain and energy prices.

The North Africa country, suffering from its worst financial crisis, is trying to agree on a new financing programme with the International Monetary Fund.

The energy balance deficit doubled to six billion dinars in the first eight months of 2022 compared with 2.9 billion dinars last year, driven by the impact of the war in Ukraine.

© 2022-2022 The Arab Weekly. All rights reserved.

You may also like