Tunisia Raises Fuel Prices by 4%

A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 01, 2018. Reuters
A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 01, 2018. Reuters
TT
20

Tunisia Raises Fuel Prices by 4%

A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 01, 2018. Reuters
A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 01, 2018. Reuters

Tunisia raised fuel prices by four percent on Saturday, following four consecutive hikes in 2018, in an effort to rein in its budget deficit and reduce it to about 3.9 percent of the GDP after it reached 4.9 percent last year, announced the Ministry of Industry.

Based on the ministry’s statement, gasoline was increased 0.080 Tunisian dinars to 2.065 dinars, sulfur-free diesel 0.080 Tunisian dinars to become 1.825 dinars and diesel became 1.570 dinars after a 0.090 dinar hike.

The ministry explained that the hike was introduced in light of the rise in global prices after the price of crude oil reached $68 a barrel.

However, the ministry asserted that the price of liquefied petroleum gas (LPG) used in households has not been adjusted.

Tunisia aims to introduce reforms requested by the country’s international lenders, the government said in the first hike this year.

Through these repeated increases, Tunisia is responding to one of the conditions of the International Monetary Fund (IMF) and a number of international financing and lending institutions that have demanded a three-month automatic adjustment to fuel prices in an attempt to reduce the budget deficit, which is largely linked to spending on energy subsidies.

Tunisia's financial and economic expert Ezzeddine Saidan predicted that these increases would continue as long as international oil prices are on the rise.

He pointed out that the Finance Ministry adopted in the 2018 budget reference oil prices within the range of $54, and soon oil prices exceeded the threshold of $70, which left a large financial gap, and forced the government to pass a supplementary law to overcome the scarcity of financial resources and a growing budget deficit.

The Tunisian Confederation of Industry, Trade and Handicrafts objected the repeated fuel price hikes. Head of the confederation, Samir Majoul, said the measures will have many repercussions on the Tunisian economy.

He warned that the price increase will cost investors additional funds which they can’t afford, and will be negatively reflected on a number of economic activities such as transportation, electricity, gas and various industrial production processes.

The Ministry of Finance indicated that every dollar increase in oil prices requires additional financial resources of about 120 million Tunisian dinars from the state budget, stressing that the government cannot make such expenditures in light of a drop in production and exports.

The 2019 budget allocated 2.1 billion dinars for the petroleum industry, and the government said the total energy deficit amounted to one third of the trade deficit in 2018, which reached 19 billion dinars.

Tunisia's oil production has significantly dropped in the past years, reaching an average of 42,000 barrels per day (bdp). Before 2011, oil production was in the range of 80,000 bpd, covering about 48 percent of the country's petroleum needs.



Saudi Arabia Unveils Pavilion at International Defense Exhibition and Conference in UAE

The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)
The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)
TT
20

Saudi Arabia Unveils Pavilion at International Defense Exhibition and Conference in UAE

The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)
The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030. (SPA)

The activities of the Saudi pavilion, organized by the General Authority for Military Industries (GAMI), kicked off on Monday at the International Defense Exhibition and Conference "IDEX 2025" in Abu Dhabi. This event is being held under the patronage of Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates.

Governor of GAMI Eng. Ahmad Abdulaziz Al-Ohali participated in the launch, in the presence of Lt.-Gen. Mohammad Bin Abdulrahman bin Hamed Al-Gharibi, Chief of Staff of the Royal Saudi Naval Forces, Sultan bin Abdullah Al-Angari, Saudi ambassador to the UAE, and a number of officials, international investors and decision-makers in the sector.

Al-Ohali emphasized the significance of the Kingdom's participation in IDEX 2025 as a leading global platform for showcasing the latest military technologies.

He underscored the importance of establishing international partnerships that enhance the Kingdom's defense and security capabilities.

The Saudi pavilion serves as a strategic window that reaffirms the Kingdom's commitment to developing its defense sector and strengthening national competencies, contributing to the ambitious goal of localizing over 50% of military spending by 2030, he added.

During the exhibition, GAMI signed a cooperation agreement in the field of government quality assurance with the Defense Acquisition Program Administration in South Korea.

The agreement aims to boost the assurance and reliability of defense products and services carried out under purchasing and acquisition operations, in accordance with the local laws and regulations of both sides.

The agreement reflects the mutual desire of both parties to deepen joint cooperation in the field of defense industry and technology, in a way that achieves the national interests of both countries. The two parties also intend to expand the scope of cooperation by exchanging experiences and best practices in the field of government quality assurance for defense products and services.

The Saudi pavilion is showcasing the latest technologies and advanced systems, underscoring the significant progress the Kingdom has made in localizing military industries, in alignment with the objectives of Saudi Vision 2030.

It is presenting the latest locally developed defense technologies across military, defense, and security industries. It features a variety of military products aimed at highlighting the capabilities of the defense and military sectors. Additionally, it presents investors with a conducive investment environment and the promising opportunities available in the sector.

In addition to GAMI and the General Authority for Defense Development (GADD), the pavilion includes the World Defense Show (WDS), along with several national companies operating in the military industries sector. The companies include the Saudi Arabian Military Industries (SAMI), the National Company for Mechanical Systems (NCMS), the Middle East Propulsion Company (MEPC), the Saudi Chemical Company Holding (SCCH), AlKorayef Group, Life Shield Military Industries (LIFE SHIELD), Emaan International, QUDRA Industrial Company, and the Saudi Company for Aircraft Maintenance and Preparation (GDC).