Tunisians increasingly pressured by rising prices
Tunisia continues to experience one of the worst moments of its economy and this is being reflected in the pressure being put on the country's citizens. The crisis is forcing up the prices of basic commodities and other goods. In addition, the pandemic situation has not helped to improve the nation's deteriorating situation. The Tunisian government has been forced for the fourth time to increase fuel prices, forcing the country's inhabitants to find themselves in a situation of exhaustion and fatigue.
This was announced by the Tunisian Ministry of Industry, Energy and Mines in a press release. "It is part of the oil price adjustment programme adopted in the 2022 budget," the ministry said. The measure will start to be implemented in early February.
The measure comes, according to the administration, with the justification that it has to keep pace with other countries in this increase and that it is reflected in the global fuel market. In addition, it should be noted that the government has been forced to take this action to curb its budget deficit and to alleviate subsidies. International money exchange experts say they will support the country with a loan to cover needs.
The price increase is due to the fact that, on a global level, the price of a litre of unleaded diesel rose to 2.1 dinars, almost a dollar more. On the other hand, regular gasoline increased to 1,866 dinars, which is more than 0.6 dollars. And also, the price per litre of unleaded petrol has been affected, rising to 1.7 dinars per litre, which is about half a dollar. This is all due to the global price adjustment of barrels, where prices have started to reach record highs. The threshold level is now contemplated to be close to 90 dollars, a figure seen for the first time in seven years.
"Each increase of one dollar per barrel implies additional financing needs for the hydrocarbon, electricity and gas system of 140 million dinars, about 48.2 million dollars, per year," the departmental statement added.
Initially, the measure will have serious repercussions for the Tunisian economy. According to global economic experts, the price hike will affect the country's entire population, especially those living in poverty or on low incomes. Now only petrol will be raised, but then the increase will begin to spread to other productive sectors such as commerce, agriculture, industry and transport, which will begin to raise the price of the products they distribute more and more. Concern is centred on the negative impact on low-income families, since, if the situation does not improve, they will be increasingly constrained in their ability to survive.
The government has already announced that it will begin to review the support system this year as part of the reform plan to save public finances and thus everything that goes with it. The International Monetary Fund (IMF), one of the main agencies that have been most supportive of Tunisia's emergence from its economic recession, says that further reducing the fiscal deficit this year and in 2023 will be important in creating stability in debt and reducing demand for imports.
Tunisia has been embroiled in one of the biggest crises the country has experienced since independence in 1956. Unemployment is very high, at almost 18%, and more than half a million people live below the poverty line.
