In Dakar, an increase in the price of fuel and electricity came into effect on Saturday, January 7. For the government, this new increase can be explained by the persistence of the international crisis which is increasing the price of raw materials and affecting the world economy. A measure that the Coalition of Trade Unions of Senegal does not intend to support.
The Senegalese government has decided to reduce its subsidy on the price of diesel, gasoline and electricity, directing it to the most vulnerable Senegalese. This measure leads to an increase of 100 FCFA on the liter of diesel and gasoline. Thus, from 655 to 755 CFA francs per liter of diesel, and from 890 to 990 CFA francs for gasoline.
Readjustment of diesel and gasoline prices
According to the explanations of the Minister of Oil and Energy, in view of the world prices of hydrocarbons, the approved prices had to be revised upwards. In 2022, the average cost of a liter of diesel should have been CFAF 1,019 and that of premium fuel FCFA 1,063. However, the Senegalese government had maintained the price of diesel at F CFA655 throughout the year and the price of premium fuel at F CFA 755 until June, then F CFA 890 from June to December 2022. “The subsidy on petroleum products cost the State 583.5 billion CFA francs in 2022. That is why the State has decided to make an adjustment of 100 CFA francs on diesel and premium fuel, which is equivalent to bringing the price of diesel to 755 CFA francs and that of premium fuel to 990 CFA francs, “said Ms. Aissatou Sophie Gladima, Senegalese Minister of Petroleum and Energy. She also reassured that “Accompanying measures will be taken to directly subsidize carriers, so that this readjustment does not impact the cost of transportation.
What about electricity?
As for the increase in the cost of electricity, it will be applied “in installments” and will not affect users who consume less than 150 kilowatts per hour, every two months. Thus, electricity bills are issued according to three voltages: Low, Medium and High Voltage. “On the low voltage, beyond 150 KWh, there will be an average increase of 18.97 FCFA/KWh. On the Medium, it is expected an average increase of 22.79 FCFA / kWh and on the High Voltage, it will be an average increase of 14.31 FCFA / kWh, “said the Minister.
This price adjustment should allow the State to save about 258.2 billion CFA francs by 2023, including 99.7 billion CFA francs for electricity and 158.5 billion CFA francs for petroleum products. “The government has decided to reduce this subsidy to direct it to the most vulnerable, to give electricity to localities that do not have it and to invest in other sectors, because the most affluent consumers will support them. This reduction of the subsidy will inevitably require a readjustment of certain categories of electricity, diesel and super fuel users”, Aissatou Sophie Gladima believes.
Measure deemed “unacceptable
Moreover, this measure is considered “unacceptable” by the Coalition of Trade Unions of Senegal. In a statement released on Tuesday, January 10, the coalition said that the suspension of the energy subsidy should not be a pretext to justify the increase. “This justification is difficult to understand especially after the vote of the budget of the year 2023, proclaimed social year, and which part, we point out, is devoted to support household consumption already tested by price inflation that has already reached worrying proportions of more than 17% at the end of November 2022, “mentions the document.