Tunisia increases gasoline prices to trim budget deficit

Reuters, Amr El-Feki, Sunday 12 Dec 2010

For the second time in 2010, the Tunisian government has increased gasoline prices, this time by four per cent

Tunisia 1
The price of lead-free petrol and premium petrol reached 1.370 Tunisian dinars.

The Tunisian government has raised gasoline prices by four per cent with the aim of cutting its budget deficit.

This is the second time in 2010 for the government to increase gasoline prices.

The price of lead-free petrol and premium petrol will rise to 1.370 Tunisian dinars (95 cents) from 1.320 dinars (91 cents), according to a press release from the Ministry of Industry and Energy. The price rise will be implemented starting today, Sunday.

Adopted 16 January 2009, the Tunisian government set a mechanism on gasoline price flexibility. The mechanism permits the government to interfere to change prices when the gap between the international price and the equilibrium index price exceeds $10 per barrel for three consecutive months.

During the last quarter in 2010, the international price reached almost $75 per barrel compared to $52 per barrel for the equilibrium index price.

Tunisia has launched a campaign to cut energy consumption and expanding the exploitation of the natural gas network and the use of renewable energy after the continuous rise in global oil prices.

(The US dollar is equal to 1.448 dinars)

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