© Joel TATOU / AFP
Gabonese Prime Minister Rose Christiane Ossouka Raponda explained that the State was devoting a large budget to avoid a surge in prices. (illustrative image)
Despite soaring prices on the international market, Gabon has decided to cap the prices of basic necessities.
With our correspondent in Libreville, Yves Laurent Goma
If the fuel were not subsidized, the price of gasoline would cost 900 CFA francs per liter instead of 605 CFA francs currently. The Gabonese State devotes a heavy envelope to avoid a surge in prices at the pump, explained Prime Minister Rose Christiane Ossouka Raponda.
« Today, the state subsidizes the price of fuel at the pump. We are at nearly 47 billion CFA francs that the State subsidizes within the framework of prices at the pump, precisely. »
Gabon has a refinery, SOGARA, which struggles to meet national demand, hence the massive import of petroleum products. It buys its crude at the international market price.
In addition to oil, Gabon also subsidizes foodstuffs such as flour. ” The state is forced to subsidize flour at very high levels. We are trying to strike the right balance so that the consequences for the Gabonese economy do not destroy the purchasing power of households. »
According to an economist, an oil-producing country, Gabon would reap significant revenue following the surge in black gold prices, which allows the authorities to deal with the generalized crisis. Stabilizing prices would avoid social unrest one year before the next presidential election.
