Tunisia: Strategic Fuel Reserves Dwindle, Increasing Consumer Fears

by | Oct 11, 2022 | Economic, Tunisia

Summary:

On 10 October 2022, a senior union official announced that the country had less than a week of fuel supplies available in strategic reserve. An official from the Ministry of Energy countered this claim, noting that a shipment of fuel was being unloaded in the northern city of Bizerte and would extend reserves to up to two weeks. Longer lines than usual formed at gas stations across the capital city of Tunis as concerns have grown for several days about supplies. Government officials continued to blame irresponsible consumption and speculators for the fuel crisis, while other commentators have questioned the Tunisian government’s ability to continue to make payments on heavily subsidized imports like fuel.

Outlook:  

Tensions continue to grow around the food and fuel shortages that have strained consumers across Tunisia, with recent protests perhaps indicating a rising impatience with government’s chosen path toward securing International Monetary Fund (IMF) loans to help stabilize the floundering economy. Rumors abound in Tunis as to what the government has planned to simultaneously appease consumers, with high expectations for government subsidized pricing of basic goods, and international lenders who continue to press for systemic reform of the sprawling public sector.