Increase in exports and imports in energy sector

The latest data from the National Energy and Mines Observatory’s monthly report for December 2023 emphasises a dual trend in Tunisia’s energy sector: a substantial climb in energy product exports alongside a marked increase in imports. This pattern has contributed to an extended deficit in the country’s energy trade balance.

Exports of energy products saw a significant 44% surge in value, whereas imports experienced a 30% increase. Therefore, the deficit in the energy trade balance escalated from 802 million Tunisian dinars (MDT) in January 2023 to 1,011 MTD in January 2024, marking a 26% rise.

Several critical factors play a role in shaping the energy sector’s trade dynamics. These include the volume of traded energy products, the exchange rate between the US dollar and the Tunisian dinar ($/DT), and the price of Brent crude oil, which acts as a global benchmark for pricing both imported and exported crude and petroleum products.

A notable reduction in the volume of traded energy commodities has exercised additional pressure on the trade balance. This decline could stem from a variety of factors, such as shifts in global energy demand or alterations in supply and distribution strategies.

While the exchange rate between the US dollar and the Tunisian dinar remained fairly steady during the observed period, fluctuations in global oil prices and other elements can still affect the cost of imports and exports.

In January 2024, Brent crude oil prices encountered an increase compared to January 2023. This rise likely contributed to the heightened value of energy product exports but also resulted in increased import costs for Tunisia.

The evolving situation of Tunisia’s energy trade balance is indicative of a complicated interplay of economic forces. Despite the growth in energy product exports, a larger increase in imports led to a widened deficit. Monitoring these trends and devising effective policy measures are crucial for alleviating trade balance pressures and fostering long-term economic stability.