Fuel Subsidies in Niger

In 2010, the cost of fuel subsidies in Niger reached about 1 percent of gross domestic product (GDP). The International Monetary Fund (IMF) argues that such expenditure was not only a burden on the government budget, but in addition they do not benefit the poorest segments of the population. In July 2011 the government adopted a strategy designed to gradually eliminate the subsidies. The government have also adopted mitigating measures to protect the urban poor from increases in transportation costs.

At the opening ceremony of the Soraz Oil Refinery protests were held against the limited extent to which the government will subsidize the domestic sales of Nigerien oil. According to the IMF the agreed prices were around 14 to 17 percent below import prices.

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