Home Cartoon budget Tunisia raises cooking gas and fuel prices in a bid to cut subsidies

Tunisia raises cooking gas and fuel prices in a bid to cut subsidies


TUNIS (Reuters) – Tunisia said on Saturday it was raising the price of cooking gas cylinders by 14% and fuel by 3% as part of a plan to cut energy subsidies, a policy change sought by the country’s international lenders.

The energy ministry said the price of cooking gas will rise from 7,750 dinars to 8,800 dinars, in the first increase in 12 years.

The price of gasoline will be raised Tuesday to 2,400 dinars per liter instead of 2,330 dinars, an increase of 3%, the ministry said in a statement.

The increase in fuel prices is the fourth this year. Tunisia expects its budget deficit to reach 9.7% of gross domestic product in 2022, against 6.7% previously forecast, due to the appreciation of the dollar and a sharp increase in the price of cereals and Energy.

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

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The energy balance deficit doubled to 6 billion dinars in the first eight months of 2022 from 2.9 billion dinars last year, as a result of the war in Ukraine.

(Reporting by Tareq Amara; Writing by Tareq Amara and Moaz Abd-Alaziz; Editing by David Gregorio and Leslie Adler)

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