Tunisia Has Only One Week of Petrol Supply, Union Official Says

A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 1, 2018. (Reuters)
A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 1, 2018. (Reuters)
TT

Tunisia Has Only One Week of Petrol Supply, Union Official Says

A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 1, 2018. (Reuters)
A gas station attendant pumps fuel into a customer's car at a gas station in Tunis, Tunisia June 1, 2018. (Reuters)

Tunisia only has enough petrol to last a week, a senior official in the labor union said on Monday, but the energy minister said a new tanker was unloading and that big queues at fuel stations had been caused by a rush of consumers hoarding supply.

Long lines of cars have jammed roads as they wait to fill their tanks around Tunis over recent days in what critics of the government see as another sign of an unfolding crisis in public finances.

The petrol tanker now unloading at Bizerte will give Tunisia an extra few days of supply, taking it to 10-14 days in total, down from the usual 60 days of strategic reserves, said Salouan Smiri, a senior official in the oil section of the UGTT union.

Tunisia is already facing shortages of some subsidized goods, with empty supermarket shelves causing protests last month, as it seeks an international bailout to finance debt repayments and state spending.

"The shortage of fuel supply may resume if the state does not find enough liquidity to pay for upcoming loads," Smiri said on Shems FM radio.

The government has repeatedly denied that it is struggling to pay importers for goods - such as petrol, flour and sugar - that it sells at a subsidized rate, and has previously blamed shortages on internal speculators.

However, while Energy Minister Naila Nouira blamed the shortage on consumer behavior and global distribution problems, she also appeared to acknowledge that payments to importers were contributing to snags in supply.

"The reason for the scarcity of fuel is the rush of people... many Tunisians are taking more than they need," she said on Mosaique FM radio.

"There is financial pressure due to the immediate pace of payment that vendors are asking," she added.

Last week the ratings agency Moody's said Tunisia faced large fiscal and external imbalances, and elevating financing risks, representing significant credit weakness.

The government hopes soon to finalize a staff-level agreement with the International Monetary Fund (IMF) for a rescue program involving potentially unpopular reforms that could unlock further bilateral budget support.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.