Congo Faces Public Outcry as Fuel Prices Soar
Fuel prices in the Republic of Congo have surged by 25% in October, leading to significant public backlash. This increase comes after a similar rise in January, and the cost of gasoline has also seen a 25% spike since July.
The Congolese government cites recommendations made by the International Monetary Fund (IMF) in 2019 as the reason behind these fuel price hikes.
The IMF, under the Extended Credit Facility, provided financial assistance to the Republic of Congo, which was grappling with a severe economic crisis and unsustainable debt that exceeded 80% of its GDP.
Among the IMF’s recommended reforms was the removal of fuel subsidies. However, the Congolese branch of the What You Pay coalition (PCQVP) vehemently opposes these increases in fuel prices.
Brice Mackosso, deputy chairman of the PCQVP coalition, argues, “We have the right as an oil-producing country to sell petroleum products at lower prices in our nation. Why are we asked to sell these products at the same price as on international markets? Are we not capable of refining petroleum products for our domestic consumption to eliminate the need for subsidies? If we can refine oil for our local use, then subsidies will vanish.”
The Congolese government has taken steps to mitigate the potential inflation’s impact, which would be particularly detrimental to the population. However, the Congolese civil society believes that addressing this crisis necessitates the fight against corruption.
Brice added, “We believe that the fight against corruption in the oil sector will bring sufficient revenue to the state’s budget. We call for the prohibition of petroleum product exports. We urge the government to consider a report from the ITE of Congo and the International ITE Secretariat on fiscal modelling, showing that the Republic of Congo loses about $1 billion annually due to high costs, tax prices, and the threshold of high costs.”
The Congolese government has promised to release a report on the impact of rising fuel prices at the pump while the population grapples with skyrocketing food prices.
Source: Africanews
