Algerian Minister Rules out Price Hike

Algeria’s new energy minister Noureddine Bouterfa has ruled out a rise in energy prices this year, reported state news agency APS late on June 14.

“A price rise for energy products (gas, electricity, motor fuels) is completely ruled out for this year 2016,” he told journalists. The law allowed state utility Sonelgaz and motor fuel retailer Naftal to raise prices only once in a year, he said, alluding to a price hike they made earlier in 2016.

Bouterfa was CEO of Sonelgaz from 2004 until the weekend. The report did not say if the law covers only price rises to households, or also to large industrial customers.

Algeria's new energy minister Noureddine Bouterfa (Photo credit: www.portail.cder.dz)

In the context of runaway gas demand in Algeria either by industries or in power generation, in April 2015 he defended increasing energy prices against a prevailing government view that they should stay heavily subsidised. Moreover only a week before becoming minister, he told Radio Algerie on June 5 that price rises for electricity would be necessary to recoup just 20% of Sonelgaz's budget deficit, which he said stood at dinars 100bn ($904mn).

Bouterfa made his June 14 remarks on a visit to Tipasa, a town some 50km southwest of Algiers, where he was checking on a scheme to extend the gas distribution system to 8,000 homes in the area.

Mark Smedley