In the first half of 2024, Tunisia allocated around 73% of the subsidy expenditure in the 2024 State budget to the hydrocarbons sector, according to the note “Provisional results of the implementation of the 2024 budget” recently published by the Ministry of Finance.
At the end of June 2024, subsidies for basic products and transport did not exceed 15% and 12% respectively of the total budget earmarked for subsidy.
In fact, the state budget for 2024 earmarked about 11.337 billion dinars for subsidy expenditure, a slight decrease of 1.2% compared to the previous year.
As a reminder, in 2023 Tunisia launched the project “Intensifying the adoption of electric mobility in Tunisia”, financed by the Global Environment Facility (GEF).
It aims to accelerate the adoption of electric mobility solutions in Tunisia, which can reduce hydrocarbon offsetting expenditure.
The project, estimated to cost around $13 million, will run from May 1, 2022 to April 30, 2027.
According to a study carried out by the Ministry of the Environment, the use of 50,000 electric vehicles by 2025 and 130,000 by 2030 would reduce oil consumption by 5.9 million barrels by 2030, corresponding to a reduction in fossil fuel imports of $660 million over the period 2020-2030.
It would also avoid the emission of 2.2 million tons of CO2 equivalent (MtCO2e) of greenhouse gases in Tunisia.
