2025 Citizen's Budget Reveals Real Fuel Prices
Every year, the Ministry of Finance publishes the citizen's budget. This pedagogical version reveals some interesting figures, including the real prices of fuels.
Energy Subsidy Envelope: 7,112 MTND
Broken down by fuel type, the compensation calculated based on a barrel price of $77.4, the hypothesis retained in the budget, is as follows:
- 0.504 TND per liter of gasoline, equivalent to a real price of 3.029 TND per liter
- 0.649 TND per liter of diesel, equivalent to a real price of 2.634 TND per liter
- 0.674 TND per liter of diesel 50, equivalent to a real price of 2.879 TND per liter
- 28,000 TND per bottle of gas, equivalent to a real price of 36,800 TND per bottle
These figures are calculated based on an average parity of USD/TND of 3,100. Currently, conditions are much better, with an average rate of 2,9638. Each 0.010 TND decrease in the exchange rate results in an annual gain of 52 MTND. This positive effect is cumulative with the downward trend in the Brent barrel price. Each dollar decrease in the average price translates to an annual gain of 162 MTND.
Gains in STEG Price Compensation
Gains will also be recorded at the level of price compensation granted to STEG, representing 3,912 MTND, or 55.0% of the global envelope.
Inflation and Purchasing Power
On the other hand, these numbers give us a clear idea of the inflation that will erode what's left of purchasing power if a brutal transition to pump prices is decreed. This limits the state's ability to invest and create jobs. While this is a very short-term consequence, the economy will suffer in the current context. Although the transition to real prices is indispensable in the long term, the economy cannot support it for now.
