[ad_1]
A few days after the rise in fuel prices in Guinea, the new Ministry of Hydrocarbons held a press conference on Tuesday, July 3, 2018 in Conakry. The aim was to explain the 25% increase in the price of fuel at the pump.
In her explanation, Zakaria Coulibaly indicated that the price differential with neighboring countries leads to fraudulent exports. "The policy of subsidizing petroleum product prices, in addition to the downsizing of state resources, creates other important distortions in terms of the external trading environment. The differential between the price practiced in Guinea and those prevailing in neighboring countries applying any price flexibility, has greatly increased encouraging fraudulent exports of petroleum products to these countries, "says Koulibaly.
According to him, this cross-border smuggling induced by the comparative advantage of prices in Guinea in relation to neighboring countries weighs both on the level of imports of petroleum products and foreign exchange reserves.
"The average price in neighboring countries Mali, Senegal and the Ivory Coast are around 11,500 GNF per liter, a price differential of 3,500 GNF / L, "he said.
Speaking of the price increase unitary oil, the first responsible for hydrocarbons said that "beyond 57 USD, the unit price of the barrel, the government could increase the price of fuel in consultation with social actors. The barrel price currently hovers between USD 75-78, a percentage increase of around 58% compared to March 2015 where the price per barrel was between USD 46-48. These prerequisites are satisfied thus legitimizing any decision to increase the price of fuel in line with the budget prescriptions, "he explained.
Pastoria Camara
Source link
