Tunisia announced on Wednesday that it has raised fuel prices by nearly 5% for the third time this year in an effort to reduce the country’s budget deficit, a policy adjustment that the country’s international lenders have requested.
The North African country is attempting to reach an agreement with the International Monetary Fund on a new funding program in exchange for contentious measures such as fuel and food subsidy cuts.
According to the Energy Ministry, the price of a litre of gasoline will increase on Thursday to 2.330 dinars from 2.220 dinars.
The IMF-proposed measures include raising fuel and energy costs and freezing public-sector pay, all of which have been vigorously opposed by the country’s most prominent labour union, which has threatened to go on strike.
The price increase was attributed to the turbulence in the energy markets, the dangers associated with supply shortages, and high oil prices, according to the Energy Ministry.
According to the ministry, every $1 increase in the price of a barrel of oil brings in a $140 million gain in annual funding for the government budget.
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