
During a national radio broadcast on Tuesday, April 14, 2026, oil sector expert Mahmoud El May analyzed the repercussions of surging oil prices, exacerbated by geopolitical tensions in the Middle East. With Brent crude at approximately $99.10 per barrel, energy-importing nations like Tunisia face increased macroeconomic pressure. El May highlighted a significant budgetary impact: every dollar increase in oil prices adds an estimated 180 million dinars to public finances, underscoring Tunisia's high energy dependence and the structural burden of subsidies. He noted that fuel distributed in April is expected to cost the compensation fund an additional dinar per liter, worsening its deficit. This direct cost is compounded by a negative fiscal effect, as the state may forgo consumption tax and VAT revenues from fuel while increasing subsidies to control pump prices. El May estimates the compensation fund's deficit could reach nearly 5 billion dinars. The expert expressed concern over the lack of clear official communication from Tunisian authorities but suggested solutions based on international experiences, primarily energy consumption rationalization. He cited examples such as teleworking in Egypt to reduce travel, and fuel rationing systems in Greece and Syria for subsidized products. El May warned that if the state's purchasing power deteriorates, potentially halving energy imports, Tunisia might be forced to adopt similar energy restriction and demand management measures to
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This summary was AI-generated from a story originally published by Business News.