Fuel subsidy reforms could be the Central African Republic’s (CAR) solution to driving a more sustainable economy, a World Bank report posits. “In CAR, fuel subsidies represented about 0.5% of GDP and accounted for nearly 6% of domestic revenues and 6.3% of tax revenues in 2022. Kerosene should be excluded from the fuel subsidy reform“A well-designed fuel subsidy reform should include a robust mitigation package that offers targeted support to the most vulnerable segments of society,” said Pierre Mandon, report co-author. Drawing lessons from the experiences of countries that have successfully implemented fuel price adjustments, the report outlined four best practices for a fuel subsidy reform strategy. The Central African Republic Economic Update: Reforming fossil fuel subsidies report is available online

Source: The North Africa Journal June 27, 2023 10:14 UTC