Algeria has increased gasoline, diesel, gas, and electricity prices in its 2016 budget to cope with a sharp fall in energy earnings, Reuters reported.
The global oil price slide is testing an economic system that relies on energy revenues that account for 60 % of the state budget, to pay for a vast program of social subsidies, which helped Algeria avoid the kind of “Arab Spring” uprisings, the report explained.
The fuel price hike is inevitable, according to Algeria’s Finance Minister, Abderrahmane Benkhalfa, and it is the first attempt to curb state subsidies in more than a decade.
Gasoline and diesel prices, already low by international standards, will increase to $0.27 a liter (29.60 Algerian dinars) and $0.13 a liter (14 dinars), respectively.
As a result, the government ponders delaying some infrastructure projects over further austerity measures planned.
The budget law was criticized by opposition lawmakers, who boycotted the vote and held a protest rally in the parliament.