Tunisia Raises Fuel And Cooking Gas Costs In An Effort To Reduce Subsidies

On Saturday, Tunisia said that it would be increasing the cost of cooking gas cylinders by 14% and fuel by 3% as part of a strategy to reduce energy subsidies, a step that the nation’s foreign lenders had requested.

The price of cooking gas will rise for the first time in 12 years, according to the Energy Ministry, rising from 7.750 dinars to 8.800 dinars.

The price of gasoline will increase by 3% on Tuesday to 2.400 dinars a litre from 2.330 dinars, according to a statement from the ministry.

This year’s fuel price increase is the fourth to occur. Due to the stronger currency and a steep rise in grain and energy costs, Tunisia now anticipates that its budget deficit would climb from its earlier expectation of 6.7% of GDP to 9.7% of GDP in 2022.

The nation of North Africa, which is going through its worst financial crisis, is attempting to reach an agreement with the International Monetary Fund on a new funding scheme. Due to the effects of the war in Ukraine, the energy balance deficit increased to 6 billion dinars in the first eight months of 2022 from 2.9 billion dinars the previous year.