“Each one-dollar increase in the price of a barrel of oil results in an additional annual financing requirement of approximately 162 million dinars for the fuel, electricity, and gas system,” according to the 2025 Citizens’ Budget document published by the Ministry of Finance.
Similarly, every 10-millime increase in the dollar-to-dinar exchange rate generates an estimated additional annual cost of 52 million dinars.
According to the same document, Tunisia has allocated 7,212 million dinars this year to subsidize fuel prices.
This amount is distributed as follows: 427 million dinars for gasoline subsidies, 1,067 million dinars for gas cylinder subsidies, 1,351 million dinars for diesel, 355 million dinars for other products and arrears, and 3,912 million dinars for electricity and gas subsidies.
These projections are based on an assumed average Brent crude price of $77.4 per barrel and an exchange rate of 3.1 dinars to the dollar.
It is worth noting that petroleum product subsidies account for 61.3% of total compensation expenditures, which are estimated at approximately 11,593 million dinars in the 2025 state budget.
One of the key assumptions underlying the preparation of the 2025 budget is the stability of the Tunisian dinar exchange rate against major foreign currencies.
What's happening in Tunisia?
Subscribe to our Youtube channel for updates.
