By: Middle East Affairs
On Saturday, Tunisia’s administration raised fuel costs by around 4 percent, the fourth climb this year, with an end goal to get control over its spending deficiency and meet changes asked for by the nation’s global loan specialists.
The industry ministry said in a statement that the cost of a liter of oil will ascend to 1.985 Tunisian dinars from 1.925 dinars, beginning Sunday. The three past expands this year were in March, January and June.
Officials said: “Fuel subsidies this year will rise from an expected 1.5 billion dinars to 4.3 billion dinars with the rise of world oil prices.”
On the other hand, the IMF has been squeezing Tunisia to trim its spending deficiency and increment fuel and power bills to balance an ascent in oil costs that is forcing effectively stressed open accounts.
The IMF said on Friday after a mission visited the country: “Staying the course on reducing the fiscal deficit this year and next is critical to stabilise debt and reduce excessive demand for imports given the recent increase in global oil prices.”
The IMF statement added: “The opposite sides achieved an underlying, or staff level, concession to the following changes.”
Additionally, Tunisia has conjecture that the spending shortfall will tumble to 3.9 percent in 2019 versus 4.9 percent of total national output expected in 2018.
It should be noted that the nation has dropped into a profound financial droop following the topple in 2011 of autocratic leader Zine El-Abidine Ben Ali.