Due to a sharp rise in global oil prices and an effort to rein in its budget deficit, Tunisia raised fuel prices across the country by about 3% for the second time in a month, the Energy Ministry said on Monday.
The price of a litre of gasoline will rise on Tuesday to 2.220 Tunisian dinars ($0.76 cent) from 2.155, the ministry said in a statement.
The government is trying to agree on a new financing program with the International Monetary Fund.
Sharply rising oil prices due to the crisis in Ukraine is expected to have “major effects on public finances of the North Africa country suffering from its worst financial crisis,
For each increase of one dollar in the price, Tunisia had to pay for hydrocarbons which would cost the state 140 million dinars ($48 million), the energy ministry said.
The 2022 budget is based on an average oil price of $75 a barrel, so higher purchasing costs could widen the forecast fiscal deficit already equivalent to 6.7% of the economy.
Tunisia, which subsidises domestic fuel prices, said it will launch a package of economic reforms aimed at reducing spending as it seeks foreign rescue package to help it avert a looming crisis in its public finances.