Overall cost of energy bill in Tunisia reached 4,235 MD

 The overall cost of the energy bill in Tunisia reached 4,235 million dinars (MD) at the end of August 2018, the state budget ensures about 2,700 MD. The government had revised the cost of this bill up three times, in February, June and August, given the rise in the price of a barrel of oil internationally ($ 72 currently), and the depreciation of the Tunisian dinar (one dollar = 2.77 dinars), a government source told TAP on Thursday.

The 2018 Finance Law was based on two assumptions, the first of which concerns the price per barrel, which was set at 53 dollars, and the second concerns the price of the dollar's exchange rate against the Tunisian dinar (one dollar is exchanged at 2.5 dinars).

The government source who requested anonymity, said that the amount that was reserved for the energy subsidy in the budget 2018, amounted to 1500 MD, which represents 62% of the energy bill initially estimated in the 2018 budget at 2400 MD.

"The three adjustments on energy pricing decided by the government during the year 2018 have generated only 487 MD, to the benefit of the state budget," it said.

Since 2016, the Ministry of Energy, Mines and Renewable Energies has implemented the mechanism for automatic adjustment of hydrocarbon prices each quarter. After analyzing hydrocarbon prices, the decision is made to increase or lower their prices.

The latest decision to increase the price of hydrocarbons in Tunisia was taken on June 22, 2018, with an increase in the selling price to the public, some petroleum products, 75 millimes, per liter.

The International Monetary Fund estimated that the main priorities for Tunisia in 2018 are to increase fiscal resources, to freeze wage increases, unless the growth rate records an unexpected increase, and to adjust the prices of hydrocarbons, each quarter.