Thursday , July 7 2022

Higher Hydrocarbon Products in Burkina Faso – VivAfrik


On Friday, November 9, 2018, the prices of super and diesel pumps increased 75 Fcfa while the gas remained unchanged. For the Burkina Faso, this is a question of moving the price rises in international markets, in particular to face the heavy invoice of public subsidies. However, the measure is likely to lead to higher prices for transport and food.

Return to reality for consumers Burkina Faso who woke up this Friday, November 9, with an increase of 75 Fcfa prices on the Super and Gasoil pumps. This measure was adopted earlier by the Council of Ministers, chaired by Prime Minister Paul Kaba Tchieba, which kept the unchanged price of gas.

But a coalition against costly life, corruption, impunity and freedom, which brings together several civil society organizations, called on the population to "say no" upstairs. Show 75 FCFA at the price of the price of a liter of hydrocarbons, effective on Friday.

"It was surprised, with a sense of anger, that the CCVC found out the government's decision to increase the price of 75 CFA francs for the search for liters" super "and" diesel ", on Friday, November 9, 2018," the coalition wrote in a statement he signed first President Hrisogone Zougmore.

"While our people are already bending under the weight of their dear life and misery, in the complete indifference of the ruling authorities, such a view, cynical and contemptuous, appears as a brutal provocation that the CCVC and all the social forces that deal with the welfare of our people can not remain indifferent" , she continues.

According to government explanations, this increase follows the observation that maintenance of the pump price includes a subsidy of about 58 CFA per liter of super 91 and up to 64 CFA francs for diesel. In Burkina, the prices of petroleum products are actually stopped at the price of Brent Brent and the US dollar.

With rising prices in the past few months in markets, public revenues have also risen. Nearly 14 billion CFA francs paid by the state each month, including 8 billion for pump subsidies, which, in addition to burdening the budget, cause huge arrears that make their cash flow more difficult for the National Society. electricity (Sonabel) and those hydrocarbons (Sonabhi).

Therefore, on the basis of a report on supplying hydrocarbons Burkina Faso, the government decided on a plan to reduce state debt in relation to the country. Sonabel, the adoption of a mechanism for adjusting the prices of hydrocarbons in the pump and the decision to increase the price on the pump. Minister of Communications and Government spokesman Remis Fulgence Dandjinou reminded that in 2016, the government will lower prices by 50 Fcfa per liter, a drop that led to by 2015, then prices at the international level are already growing slightly. "The government hoped that this increase would slow down, so we will not have to equalize," Remis Dandjinou said after the government's meeting.

Salty invoice

According to the government spokesman, state subsidies each month amount to about 14 billion CFA francs, pump prices, domestic gas and Sonabel, which produce electricity from a power source. hydrocarbons. "In order to prevent international variations from affecting the price of KVH, the government has decided to withhold the subsidy for gas, the donation to Sonabel, but to reduce subsidies provided by the pumps," said Remis Dandjinou, who made the case for the enormous weight of these subsidy. "We owe today about 240 billion CFA francs Sonabhiu, and the banks no longer want to lend money to Sonabhi to buy the fuel that we will spend," said the minister, who blamed the situation with rising prices in international markets.

"There is an international situation that we do not control," said Remis Fulgence Dandjinou, Minister of Communications and spokesman for the Burkina Faso government, "The government has decided not to touch the gas and subsidies at the Sonabel level," said Allies. .

If President Roch Marc Christian Caborea is ruled by the government, there are no shortcomings in the arguments to justify his decision, it remains that this measure can cause an increase in the prices of goods and goods. In May 2016, as a result of a reduction in prices on the pump, the ticket price also dropped. With this increase, there is no doubt that carriers will also transfer an increase in tickets, inflation that will affect other essential products as already envisaged, some consumer associations that estimate "excessive growth".

The great effort of the government that took over the parallels through the subsidy

The issue of oil derivatives is becoming more and more important, given their weight in the structure of production costs, but also because of their significant impact on the behavior of macroeconomic aggregates. If the prices in the pump remained stuck in Burkina Faso since May 2016, just over two years ago, this is due to the great effort of the government that took over the colleague through a grant.

And indeed, although prices remained at the pump, in the international market, the costs of oil supply remained steadily growing. For comparison, between May 2016 and May 2018, the monthly average value of Brent Barrel rose from 46.45% to US $ 77.13 for barrel, an increase of 66.04%. %. In October 2018, Brent ranks at $ 82.09, an increase of 76.77% compared to May 2016.

In the meantime, the US dollar gradually evolved from May 2016 to May 2018, sometimes generating a slight decline of 4.78 CFA francs, which led to shortages in product sales. oil companies estimated at 73.920 billion CFA francs on June 30, 2018

Like other countries in the sub-region, Burkina Faso's carbon price is therefore based on the average of the two major variables, that is, the prices of Baril de Brent and the rate of the US dollar.

Moctar FICOU / VivAfrik

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