TUNIS, March 5 Petrol prices rose 6.8 percent in
Tunisia on Tuesday after the government cut fuel subsidies to
help reduce a forecast budget deficit of 6 percent of Gross
Domestic Product this year.
The government raised the price of petrol to 1.570 dinars
($0.99) a litre from 1.470, the second increase in six months.
Finance Minister Elyess Fakhfakh said the price rise would
reduce the cost of subsidies in the 2013 budget by 500 million
dinars to 4.2 billion dinars from 4.7 billion last year.
Tunisia's subsidy cuts are part of a deal with the
International Monetary Fund for a $1.78 billion loan.
This month the Islamist-led government began deducting one
percent of salaries above 1,700 dinars per month to help fund
A wave of unrest shook Tunisia last month after the Feb. 6
assassination of secular politician Chokri Belaid by what the
authorities say was a group of Salafi Islamist militants.
Talks are under way on a new government to replace one led
by Hamadi Jebali, who responded to Belaid's killing by proposing
a technocrat cabinet to prepare for elections. He resigned after
his own Islamist Ennahda party rejected his plan.
Prime Minister-designate Ali Larayedh, also from Ennahda, is
expected to announce a new coalition cabinet shortly.