Tunisia raises fuel prices to meet the budget deficit

On Friday, Tunisia raised fuel prices by about 2%, the first increase in two years, as the government tries to curb a budget deficit.

The Ministry of Energy said in a statement that the price of a liter of gasoline will increase from 1.915 dinars to 1.955 dinars.

Last year, Tunisia reduced fuel prices three times, as oil prices fell on the world market.

The International Monetary Fund warned this month that Tunisia’s fiscal deficit could exceed 9% of GDP if the government did not implement necessary reforms, including controlling energy subsidies.

Tunisia is facing unprecedented economic difficulties, with the fiscal deficit reaching 11.5% of GDP in 2020, the highest level in nearly four decades.

The 2021 budget aims to reduce the fiscal deficit to 6.6%.

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