Africa-Press – Cape verde. The Government decided to keep the prices of butane gas and fuels for electricity production unchanged in April. For diesel and gasoline, it sets a maximum margin of increase of up to 5% of the current price.
The announcement was made today by the Minister of Industry, Commerce and Energy, Alexandre Monteiro, and is part of the mitigating measures to guarantee fuel price stability and face the crisis.
As he said, taking into account the increases in petroleum products, at the international level, the Government decided to suspend the application of the mechanisms for fixing fuel prices, provided for by law, for the next three months (April to June) and create the conditions for dampen the adverse effects of the international situation on the internal market for energy products.
“In this sense, the update of the maximum prices for sale to the public for the month of April remains fixed at the current levels in force in the current month of March for some products such as butane gas and fuels for electricity production. The upward adjustment limit for other regulated fuel prices is set at 5% in terms of increase”, he explained.
Although the suspension of the mechanisms for fixing fuel prices, applied by the Multisectoral Economic Regulatory Authority (ARME) is for a period of three months, the situation already defined refers only to the month of April.
Depends on evolution
Alexandre Monteiro explained that the Government will monitor the evolution of the situation and adjustments may be introduced in the coming months depending on the evolution of the international situation.
According to the official, without the implementation of the measures announced today, and which are included in a resolution approved by the Council of Ministers, the increase in fuel would be in the order of 25% in April.
“In the simulation exercise carried out in mid-March, according to the international situation, the increase, in a normal situation, would be more than 25%, taking into account the level and high level of the price situation of energy products in the Parents. Therefore, the Government decided to move forward with a stabilization program in this period of turmoil”, he maintained.
And as a way of compensating the oil companies, he indicated that the measure provides mechanisms for the recovery of differentials that pass through the combined use of two instruments, namely, the compensation that will be made equivalent to the increased value of taxes per liter or kilo, related to the January situation and the remainder.
“In other words, through this measure all tax revenues increased as a result of the increase in the price of products will be used to cushion the increases during those months from April to June. The remainder may not be enough, given the uncertainty that does not allow us to know what will happen in the near future”, he said.
That is why the government established a period of 12 months for the remainder to be diluted. Prime Minister Ulisses Correia e Silva took the opportunity to appeal to Cape Verdeans to “restrain and save” in fuel and electricity consumption, in the face of the crisis, and announced cuts in state consumption to finance mitigation measures.
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