A demonstration in Tunis. Tunisia is in a grip of political turmoil and is seeking $4 billion in assistance from the IMF to cope with an economic crisis. AFP
A demonstration in Tunis. Tunisia is in a grip of political turmoil and is seeking $4 billion in assistance from the IMF to cope with an economic crisis. AFP
A demonstration in Tunis. Tunisia is in a grip of political turmoil and is seeking $4 billion in assistance from the IMF to cope with an economic crisis. AFP
A demonstration in Tunis. Tunisia is in a grip of political turmoil and is seeking $4 billion in assistance from the IMF to cope with an economic crisis. AFP

Tunisia taps into strategic reserves to meet domestic demand for petroleum products


Fareed Rahman
  • English
  • Arabic

Tunisia has begun to use its strategic reserves of petroleum products as it faces a “weekly war” to meet local demand amid the country's worst economic and financial crisis, exacerbated by a rise in global energy and commodity prices.

The North African country is hoping its reserves can bridge the supply shortfall, Rachid Ben Dali, director general of the Hydrocarbons Department at the Ministry of Energy, told state news agency Tunis Afrique Presse on Wednesday.

“This situation is very delicate and represents a weekly war,” Mr Ben Dali said, referring to the scarcity of oil supplies.

The state treasury is under pressure due to its current financial situation, he said.

Tunisia is facing mounting debt, a widening fiscal deficit and high inflation, in addition to political turmoil.

It is seeking $4 billion in assistance from the International Monetary Fund to help it stabilise its economy. Earlier this month, the lender signalled its readiness to engage in discussions with the North African country but called on Tunis to initiate reforms derailed by political instability.

The country, which is struggling with a steep rise in food prices, has struggled to pay for grain imports. The World Bank this week approved a $130 million loan to help the country pay for wheat imports and buy barley for livestock.

Mr Ben Dali said that the current consumption of petroleum products in the country was about 90,000 barrels per day, while the production capacity of the Tunisian Company for Refining Industries was 32,000 bpd.

The estimated shortfall of 58,000 bpd is being covered by the strategic reserves.

Tunisian laws on petroleum products require operators to build, hold and maintain reserve stocks of petroleum products — gas and petrol — for 60 days while for other products, the minimum time frame is 30 days, he said.

Halfaouine market near central Tunis. Tunisia is facing a steep rise in food prices. AFP
Halfaouine market near central Tunis. Tunisia is facing a steep rise in food prices. AFP

“Because of the significant international demand for petroleum products, the sellers of these materials are currently requesting immediate payment … despite the country's financial situation,” he said.

That political instability and deteriorating economy led Fitch Ratings to cut Tunisia’s rating in March to “CCC”, from “B-", seven notches below investment grade and on par with El Salvador and Ethiopia.

The rating downgrade denotes a very high level of default risk relative to other issuers or obligations, mainly due to heightened fiscal and external liquidity threats.

Tunisia’s economic outlook remains highly uncertain as the economic rebound in 2021 was relatively moderate.

The IMF expects Tunisia's economy to grow 2.2 per cent this year and inflation to rise to 7.7 per cent. The World Bank estimates GDP growth of 3 per cent this year.

Tunisia’s government debt rose to 79.2 per cent of GDP in 2021, according to government estimates, lower than the 85.6 per cent initially projected in the 2021 budget.

However, the debt trajectory moving forward is less favourable, given the expected widening of the deficit in 2022 and worsening of the real growth interest rate differential, according to Tellimer Research, which expects central government debt to rise sharply to about 90 per cent of GDP this year.

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

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The years Ramadan fell in May

1987

1954

1921

1888

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1) Beware of cheques presented late on Thursday

2) Visit an RTA centre to change registration only after receiving payment

3) Be aware of people asking to test drive the car alone

4) Try not to close the sale at night

5) Don't be rushed into a sale 

6) Call 901 if you see any suspicious behaviour

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Jetour T1 specs

Engine: 2-litre turbocharged

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Torque: 390Nm

Price: From Dh126,000

Available: Now

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

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Roll of Honour

Who has won what so far in the West Asia rugby season?

 

Western Clubs Champions League

Winners: Abu Dhabi Harlequins

Runners up: Bahrain

 

Dubai Rugby Sevens

Winners: Dubai Exiles

Runners up: Jebel Ali Dragons

 

West Asia Premiership

Winners: Jebel Ali Dragons

Runners up: Abu Dhabi Harlequins

 

UAE Premiership Cup

Winners: Abu Dhabi Harlequins

Runners up: Dubai Exiles

 

Fixtures

Friday

West Asia Cup final

5pm, Bahrain (6pm UAE time), Bahrain v Dubai Exiles

 

West Asia Trophy final

3pm, The Sevens, Dubai Hurricanes v Dubai Sports City Eagles

 

Friday, April 13

UAE Premiership final

5pm, Al Ain, Dubai Exiles v Abu Dhabi Harlequins

Sri Lanka-India Test series schedule

 

  • 1st Test India won by 304 runs at Galle
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The years Ramadan fell in May

1987

1954

1921

1888

Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ELeap%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202021%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ziad%20Toqan%20and%20Jamil%20Khammu%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%3A%3C%2Fstrong%3E%20Undisclosed%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3ESeven%3C%2Fp%3E%0A
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

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Updated: June 30, 2022, 10:10 AM`