Togo: Government spent over CFA25 billion on fuel subsidies so far this year

Economic governance
Wednesday, 20 July 2022 03:13
Togo: Government spent over CFA25 billion on fuel subsidies so far this year

(Togo First) - The Togolese government has spent more than CFA25 billion on fuel subsidies since the beginning of this year. Togo First obtained the information in a context where fuel prices were increased, again, in the country.

To cover the recent price hike, the government subsidized super unleaded, kerosene, and diesel. The respective subsidies are CFA178, CF160, and CFA233 for the three products. 

“The subsidy that helped mitigate the price increase has become a trap considering that it keeps rising,” and this profits foreign actors. “People come here to buy and sell elsewhere,” a source close to the matter said. 

This price increase corresponds to a "technical adjustment" induced by surging global oil prices.

The government added that it largely exceeded the amount it initially planned for subsidies for the period under review. 

"If we maintain this level, it will be impossible to support other sectors. Meanwhile, the subsidy on fertilizers for farmers, for example, is also necessary,” our source added.

Oil prices have been volatile in the past two months, amidst uncertainties spurred by the Russia-Ukraine conflict, which gives rise to an energy crisis, in Europe especially.  The Brent, one of the main indices of evaluation of the barrel price, remains above the $100 mark, and many experts expect its price to reach around $150 per barrel. 

Things are particularly tense for French-speaking countries in West Africa, as their currency, the CFA, which is pegged to the Euro, has been losing ground against the dollar over the past weeks.

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