Algeria’s energy demand growth shows no sign of slowing, while oil and gas production is stagnating. Tackling subsidies is the ‘obvious’ solution, but one that is unlikely to be followed.

Algeria’s gas demand recorded a 14% year-on-year increase to 11.3 bcm (4.43bn cfd) in the first three months of 2015, driven by production ramp-up at a new fertilizer plant, and rocketing power and residential demand, according to recent data from the Ministry of Energy and Mines. And with the country’s car fleet ever growing, gasoil and gasoline consumption has been going through the roof, underscoring yet again the damaging effect of fuel subsidies. (CONTINUED - 695 WORDS)