Congo-Brazzaville: the government imposes a 25% increase in super prices

2023-07-16 22:05:39

Since this weekend, the price of the super has undergone a very strong increase: +25%. The government justifies itself by saying that it is following the advice of the International Monetary Fund. The IMF, which recommends stopping subsidies for petroleum products. Consumer associations for their part denounce the lack of support measures and fear an inflation of basic necessities.

From our correspondent in Brazzaville,

In this service station in the neighborhood commonly called Château d’eau, south of Brazzaville, this head of the family came to stock up in his sedan with his wife.

The liter of the super that he bought the day before at 625 CFA francs rose to 775 CFA francs, an increase of 25%. He does not come back. ” I believe that before increasing the products, it was first necessary to increase the wages. We started increasing things a while ago. It bothers “, he laments.

This visibly angry taxi driver is also protesting against new fuel prices because his fare remains the same. ” The chauffeur [de taxi] has become very enslaved because he has to give the installment [à son patron] and buy fuel. Do I quit this job ? I go back to the village? Otherwise, what am I going to do? asks the driver.

Towards high inflation

Last January, the price of gasoline initially increased by 5%. This time, at 25%, Mermans Babounga of the Consumer Rights Observatory believes that inflation will be significant. ” Transport is the essential link that makes it possible to supply all markets, including even those involved in the provision of services that could use fuel. It will affect everyone », warns Mermans Babounga.

For his part, Cyrille Ndzoundou, president of the Congo land transport group, thinks that, without accompanying measures, the authorities have put the cart before the horse. “ This government went to the increase to want to discuss [avec la société civile] After. Which means that we are subjected to the law of the government, which does not suit us, because until today, we have difficulties to join the receipt and the fuel. »

« We must know how to tell the truth to our people »

The government says it has revised prices upwards following the advice of the IMF, which asks it to stop subsidizing petroleum products. Subsidies that cost him at least 300 billion CFA francs per year.

The wish would be to direct this windfall towards sectors such as health and education. ” We must know how to tell the truth to our populations, and begin to face the reality of prices “, declares Anatole Collinet Makosso, head of the Congolese government. ” Little by little, we were revisiting our economic model; a model that has long been influenced by state intervention. »

Behind the scenes, the government fears an inflationary spiral.

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