Tunisia raises fuel prices to trim budget gap

The Tunisian government on Tuesday announced in a communique an increase of 100 millimes (about 0.7 U. S. dollars) per liter in fuel prices, including unleaded petrol, diesel and liquefied gas, with a view to help trim Tunisia's growing budget deficit, the official TAP press agency reported. The price hike, which is the second time this year, is expected to reduce state subsidies on petroleum products from 4.7 million dinars (about 3.5 billion dollars) to 4.2 million dinars (three billion dollars). Except petrol-related products, Tunisia also subsidizes electricity and food products, including flour, sugar and cooking oil. Other austerity measures include an already effective hike in alcohol beverages, electricity prices and a one percent tax on salaries superior to 1,700 dinars (about 1,300 dollars) per month.