2023-06-21 10:46:42
DIG/ According to Gabon’s latest economic outlook for April 2023 published by the World Bank, despite its status as a net oil exporter, fuel subsidies are a growing fiscal burden for Gabon.
« High oil prices have benefited Gabon, representing a net gain for its fiscal balance.
However, the magnitude of budget surpluses is increasingly reduced by the rising cost of fuel subsidies.
Between 2021 and 2022, the cost of fuel subsidies in Gabon has fallen from the equivalent of 0.38 percent of GDP to around 0.73 percent of GDP », says the World Bank.
Fuel subsidies in Gabon are mainly applied in the form of budgetary transfers made to Sogara, the national refinery company, in compensation for local fuel sales below international market prices; in addition, a VAT exemption also applies to sales of butane gas.
The subsidies are, since June 2022, reserved for households.
The most subsidized petroleum product in 2022 was diesel (consuming 45.4 % grants awarded by, a fuel mainly consumed by the wealthiest households.
The second row was occupied by kerosene, with 33.8 % the total amount of grants awarded.
L’essenceused in particular in private vehicles, ranked third with 20.8 % the total amount of subsidies granted by the State.
Butane gasmainly consumed by the most vulnerable households, accounted for only 0.1 % grants awarded in 2022.
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