The increasing of fuel prices is the government surprise at Eid

The new government, headed by Mostafa Madbouli, announced on Saturday morning, the second day of the Eid al-Fitr, the movement of prices of petroleum products, explaining that the price move provides the state 50 billion pounds.

Minister of Finance Dr. Mohammad Meit confirmed that there is no alternative for the reduction directed oil material support, after the doubling of world oil prices and overcome $ 80 a barrel, which had a negative impact on the financial situation of the State and displays them again at risk, adding that if it does not increase the deficit and borrowing by more than fifty billion pounds, the state can not continue economic reform and the financing of social protection packages and increased investment and achieving social justice.

He pointed out that the government reduced the fuel subsidies for the new fiscal year to reach 89.1 billion pounds compared to 110.15 billion estimated by the budget of the current fiscal year, a difference of 21.05 billion pounds of the total budget support bill of 334 billion pounds, of which close to 100 billion pounds for living Support catering card.

He added: "If we do not take the decision to move fuel prices, the support for petroleum products would reach more than 150 billion pounds, and this will be at the expense of health and education, and the creation of jobs and therefore the decision was taken."

The minister stressed that the decision to move fuel prices to correct the path of support for energy, pointing out that the government gets part of it and reoriented to increase wages 7% of those addressing the civil service law, and 10% of non-respondents, in addition to the amounts and increase pensions and raise the limit of tax exemption in income tax, Which will cost the treasury nearly 60 billion pounds, and we have directed part of the low-income and health services, education and social protection.