Energy minister calls for a rise of fuel prices

The Algerian energy and mines minister Chakib Khellil has called the government, during the last ministerial meetings presided by the Prime Minister Ahmed Ouyahia, rise gas prices.

• Reliable sources revealed that the minister has presented a thorough report in which he exposed in details the reasons that pushed him to bring anew for debate a proposal he submitted two years ago.
• Chakib Khellil staunchly defended his project in front of the cabinet members forwarding tallies showing big gap between the production costs and the price at petrol stations. He also insisted on the priority to impose a special tax on gasoil to encourage the use of cleaner fuels.
• Chakib Khellil has indicated that Algeria is still applying a subsidized policy to fix fuel prices as opposed to other petroleum exporting countries, but this policy is no longer in use even in producing nations. He went on saying that this policy plays in favor of traffickers who smuggle a subsidized product to garner huge profits elsewhere.
• The minister based his arguments on the fact that the Algerian hydrocarbons company (SONATRACH) has to offset its investments’ abroad as well as its will to invest in clear energy. Moreover, the country’s use of gasoil witnessed a dramatic rise that the authorities resorted to import this product because the Algerian refineries cannot fulfill the increasing demand.
• The Prime Minister and his cabinet didn’t seem to support the minister’s proposal arguing that this would affect the citizens’ purchasing power, sources revealed.