Tunisia: Between lowering fuel prices and creating jobs, the choice is quickly made
19 November 2009
Read by 1609 persons
In his press conference on Saturday, January 10, the Minister of Finance was questioned several times about the lack of reduction in fuel prices in Tunisia despite the drop in oil prices worldwide. After explaining his arguments (and frankly, let's be clear), the minister failed to convince the audience, and the comment was made by a colleague.
And the minister returned to explain further the government's vision and the reasons that led it not to reduce prices.
Mohamed Rachid Kechiche first recalls that Tunisia did not increase its prices much when oil experienced vertiginous increases. Some countries, he says, increased their price by 1 dinar (figure given only to illustrate the example) and then reduced it by 200 millimes.
We, in Tunisia, only increased by 500 millimes overall, which means that despite current prices, ours remain lower than those of several other countries. It is true that the price of a liter of gasoline or diesel is lower than that practiced in France or Morocco, which buy oil at the same rate as us. In short, and if we understood correctly, the price of fuel in Tunisia would be even higher if it were currently indexed to the international price of oil.
The other argument put forward by Kechiche is that of government choices to take advantage of this (temporary) lull in prices to invest more in other sectors of the economy: development, infrastructure, but above all employment.
"It must be admitted that those who have access to the media are people with a certain material level and can, therefore, make their voices heard. But this is not the case for job seekers," says the minister. "Ask an unemployed person if it is better to find them a job or lower the price of gasoline by 50 millimes and you will see their answer."
While admitting that the decision is unpopular, Mohamed Rachid Kechiche leaves the door ajar by stating that the revision of domestic prices "is possible" if it turns out that the national economy is not affected by the downturn in the global economy.
Businessnews
Posted on January 22, 2009
And the minister returned to explain further the government's vision and the reasons that led it not to reduce prices.
Mohamed Rachid Kechiche first recalls that Tunisia did not increase its prices much when oil experienced vertiginous increases. Some countries, he says, increased their price by 1 dinar (figure given only to illustrate the example) and then reduced it by 200 millimes.
We, in Tunisia, only increased by 500 millimes overall, which means that despite current prices, ours remain lower than those of several other countries. It is true that the price of a liter of gasoline or diesel is lower than that practiced in France or Morocco, which buy oil at the same rate as us. In short, and if we understood correctly, the price of fuel in Tunisia would be even higher if it were currently indexed to the international price of oil.
The other argument put forward by Kechiche is that of government choices to take advantage of this (temporary) lull in prices to invest more in other sectors of the economy: development, infrastructure, but above all employment.
"It must be admitted that those who have access to the media are people with a certain material level and can, therefore, make their voices heard. But this is not the case for job seekers," says the minister. "Ask an unemployed person if it is better to find them a job or lower the price of gasoline by 50 millimes and you will see their answer."
While admitting that the decision is unpopular, Mohamed Rachid Kechiche leaves the door ajar by stating that the revision of domestic prices "is possible" if it turns out that the national economy is not affected by the downturn in the global economy.
Businessnews
Posted on January 22, 2009
