Algeria Passes New Energy Law

Algeria Passes New Energy Law

Algeria’s cabinet approved a new energy law that is expected to pump more investments in the vital hydrocarbon sector, Bloomberg reported.

Mustapha Hanifi, Head of the Energy Ministry’s hydrocarbon department, said ahead of the new law’s passing that the older version had “shown its limits,” where authorities used to decide between maintaining high taxes or cutting them to lure investors.

The draft energy bill was seen by several entities to ensure that the government is not the sole decision-maker in the process.

The government had been imposing its authorities to ensure their grip on power even after the mass demonstrations that led to the resignation of President Abdelaziz Bouteflika in April. Meanwhile, hours before its passing, hundreds of protesters gathered, saying the interim government lacked the authority to approve the legislation and was intent on passing it only to win the backing of Western nations.

Algeria heavily depends on oil and gas for its foreign revenue. However, the volatility in the oil market over the past few years forced a sharp draw-down in the country’s foreign currency reserves.

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