Amid brawls and insults, the Algerian parliament on 30 November ratified the draft 2016 budget law, which will see increases in domestic prices of gasoline, diesel, gas and electricity in a bid to cope with a falling hydrocarbons revenue. These increases will be the first in more than a decade to affect the country’s subsidized prices.
While full details of the price hikes are still sketchy, gasoline prices will rise to AD29.6 ($0.27)/liter from AD23.6 ($0.22)/liter, while diesel will increase slightly to AD14/liter from AD13/liter. Domestic energy prices are very low by international standards. Also VAT on electricity and natural gas rates will rise from the current 7% to 17%, and 3G telecoms services will be subjected to VAT. The law also opens the way for the privatization of state companies. (CONTINUED - 303 WORDS)