Tunisia raises fuel prices again amid severe financial crisis

0

A worker stands next to a fuel pump as it is reflected in a car window at the Agil gas station in Tunis, Tunisia February 3, 2016. REUTERS/Zohra Bensemra

Join now for FREE unlimited access to Reuters.com

Register

TUNIS, April 13 (Reuters) – Tunisia said on Wednesday it had raised fuel prices by around 5% for the third time this year in a bid to contain its budget deficit, a policy change sought by international lenders in the country. country.

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 in exchange for unpopular reforms, including cuts in fuel and food subsidies .

The price of a liter of gasoline will drop from 2,220 dinars to 2,330 dinars (0.78 dollars) on Thursday, the energy ministry said.

Join now for FREE unlimited access to Reuters.com

Register

Reforms proposed to the IMF include an increase in fuel and electricity prices and a wage freeze in the public sector, measures firmly rejected by the country’s most powerful union, which has threatened to call a general strike.

The Department of Energy said the price hike was due to turmoil in energy markets, risks from dwindling supplies and high oil prices.

Every $1 increase in the price of a barrel of oil leads to an increase in annual government budget funding of $140 million, the ministry said.

($1 = 2.9840 Tunisian dinars)

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Tarek Amara; Editing by Leslie Adler

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.