Algeria’s energy earnings are forecast to fall to $26.4b next year while foreign exchange reserves will dip to $121b after low oil prices cut into the Opec nation’s economy, Finance Minister Abderrahmane Benkhalfa said yesterday, Gulf Times reported.

The North African state, a major gas supplier to Europe, has already said energy earnings will fall by 50% this year to about $34b. Oil and gas sales make up 95% of its exports and account for 60% of the country’s budget.

In this scenerio, Algeria is considering higher taxes, import duties and a hike in subsidised diesel and electricity prices to help cover its deficit after the slump in crude oil prices eroded its revenues, according to a draft of its 2016 budget, according to Citizen.