Tunisia Fuel Hikes Increase Pressure On Government

Tunis on 1 April hiked fuel prices for the fifth time since the beginning of 2018. The more Tunisia enacts measures to contain its deficits, the more backlash it faces from its economically struggling populace.

As the IMF and Tunisia’s government met in Tunis this week to discuss economic reforms prescribed as part of the fifth review of the country’s $2.9bn IMF program, angry demonstrators took to the streets to demand the government roll back a set of fuel hikes introduced at the beginning of the month. No doubt with one eye on events in neighboring Algeria ( MEES, 12 April ), Tunisia’s politicians risk being caught between the worthy but unpopular demands of the IMF and the jury of the street.

During the IMF’s 27 March – 9 April visit, the government both announced fuel price increases and a two-year in the civil servant retirement age to 62. Unable to conclude their visit with a deal to release the next tranche of cash to Tunis, the IMF said the government still “needs to fully flesh out its policy proposals.” (CONTINUED - 873 WORDS)

DATA INSIDE THIS ARTICLE

chart 1: Tunisia's Energy Subsidy Spending Is Rises In Line With Global Crude Prices
chart 2: Oil Demand ('000 B/D) Has Been Steadily On The Rise, But Tunisia's Ability To Meet It Has Nose-Dived
chart 3: Tunisia Is Reliant On Algerian Gas For To Meet Around 66% Of Its Gas Demand