Emmanuel Addeh in Abuja
Tunisia said at the weekend said that it was raising the price of cooking gas cylinders by 14 per cent and petrol by 3 per cent 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.
It is coming after the Kenyan President, William Ruto, days ago followed up on a pledge to remove a fuel subsidy that has further depleted the state’s already strained coffers.
Just a day after Ruto’s September 13 swearing in, Kenya’s Energy & Petroleum Regulatory Authority said it had scrapped a subsidy on gasoline, raising the price by 13 per cent.
But the regulator retained diesel and kerosene subsidies, helping cushion low-income earners who use the latter fuel for lighting and cooking, and rely on public transport.
In Tunisia, the petrol price will be raised today (Tuesday) to 2.400 dinars per litre from 2.330 dinars, a 3 per cent increase, the ministry said in a statement.
The rise in fuel prices is the fourth this year. Tunisia expects its budget deficit will expand to 9.7 per cent of Gross Domestic Product (GDP) in 2022, up from a previously expected 6.7 per cent, due to the stronger dollar and a sharp increase in grain and energy prices.
The North African country, suffering from its worst financial crisis, is trying to agree on a new financing programme with the International Monetary Fund (IMF), Reuters reported.
The energy balance deficit doubled to 6 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.
