Deputy Prime Minister and Minister of National Economy, Daniel Mukoko Samba, revealed on Monday that subsidies granted by the Congolese government on the prices of petroleum products are causing a significant loss of revenue for the State, estimated at around $15 million per month. These statements were made during a joint press conference with the Minister of Communication and Media, Patrick Muyaya.
Mukoko Samba explained that without these subsidies, the price of a litre of fuel could reach up to 5,400 Congolese francs. To avoid such a price spike, the government is covering a significant part of the cost, between 2,100 and 2,300 francs per litre.
“We are massively subsidizing the prices of petroleum products to protect the purchasing power of citizens, but this creates a considerable shortfall for the state,” he said. This shortfall, which was previously around $40 million per month, has been reduced thanks to the government’s efforts, but it nevertheless remains a significant financial burden.
The Deputy Prime Minister also mentioned that the government is working to stabilize the exchange rate and increase sales volumes to reduce the impact of subsidies. Reforms are underway to control the “average commercial border price”, a key element in the formation of fuel prices in the DRC.
Despite these efforts, Mukoko Samba stressed that reducing the subsidy remains a major challenge for the State, which must find a balance between consumer protection and public finance management.
/actualité.cd
2024-08-14 17:18:36
#DRC #Monthly #revenue #shortfall #million #caused #fuel #subsidies