Ivory Coast cuts fuel price

ABIDJAN – Ivory Coast’s government agreed on Sunday to cut the fixed price of diesel fuel to partially offset a hefty rise earlier this month that caused a disruptive transport strike last week in the world’s top cocoa grower.

Prime Minister Guillaume Soro said the price cut and other concessions to transporters would cost the state 200 billion CFA francs (US$484 million), and government ministers’ and managing directors of parastatals pay would be cut in half as part of efforts to make good the shortfall. It was unclear whether the moves would appease unions who called a stoppage last week that disrupted public transport in the main city Abidjan – although cocoa exporters said they were little affected because it happened at a quiet time of year.Soro, who met union leaders on Saturday, announced the measures at a news conference late on Sunday after an extraordinary cabinet meeting chaired by President Laurent Gbagbo approved the moves.The price of diesel, which the government raised earlier this month by 44 per cent to 785 CFA francs (US$1.90) per litre to better reflect high world crude oil prices, saw the biggest cut, falling 100 francs to 685 francs per litre, he said.That and other concessions, including a 6-month extension of the deadline for payment of road tax, would help reduce the cost of transport and combat food price inflation, Soro said.Rising food prices sparked violent protests in Abidjan in March and April when housewives took to the streets banging pots and pans, youths built burning barricades and at least one man was killed.’CRY FROM THE HEART Although the price rises stem from world oil price rises and other external pressures, continued protests could create serious political problems at home for Gbagbo, who is widely expected to stand for a second term in office in long-delayed post-war elections scheduled for November.”Having heard the people’s cry from the heart, the government has decided to cut the price of fuel,” Soro said.”We have decided to create a surveillance committee to check that the prices are being respected …we will reinforce measures against racketeering,” he said.The cost of paraffin, used extensively for lighting and other purposes in households lacking electricity, was also cut to 490 CFA francs/litre from 550.Civil servants, who number 90 000-100 000, saw their monthly transport allowance more than doubled to 5 000 CFA from 2 000.”These efforts drawn up and agreed by the government amount to 200 billion CFA francs, which will have to be found from somewhere,” said Soro, a former northern rebel leader who was appointed prime minister last year under a deal to reunite the country after a 2002-2003 war.”As a result we have decided to reduce state expenses, starting with cutting by half salaries for all government ministers …and managing directors of state or parastatal enterprises,” he said.Soro said running costs and investments in government departments would also be cut to help cope with the extra expenditure and reduction in state revenues resulting from the various concessions.Nampa-ReutersIt was unclear whether the moves would appease unions who called a stoppage last week that disrupted public transport in the main city Abidjan – although cocoa exporters said they were little affected because it happened at a quiet time of year.Soro, who met union leaders on Saturday, announced the measures at a news conference late on Sunday after an extraordinary cabinet meeting chaired by President Laurent Gbagbo approved the moves.The price of diesel, which the government raised earlier this month by 44 per cent to 785 CFA francs (US$1.90) per litre to better reflect high world crude oil prices, saw the biggest cut, falling 100 francs to 685 francs per litre, he said.That and other concessions, including a 6-month extension of the deadline for payment of road tax, would help reduce the cost of transport and combat food price inflation, Soro said.Rising food prices sparked violent protests in Abidjan in March and April when housewives took to the streets banging pots and pans, youths built burning barricades and at least one man was killed.’CRY FROM THE HEART Although the price rises stem from world oil price rises and other external pressures, continued protests could create serious political problems at home for Gbagbo, who is widely expected to stand for a second term in office in long-delayed post-war elections scheduled for November.”Having heard the people’s cry from the heart, the government has decided to cut the price of fuel,” Soro said.”We have decided to create a surveillance committee to check that the prices are being respected …we will reinforce measures against racketeering,” he said.The cost of paraffin, used extensively for lighting and other purposes in households lacking electricity, was also cut to 490 CFA francs/litre from 550.Civil servants, who number 90 000-100 000, saw their monthly transport allowance more than doubled to 5 000 CFA from 2 000.”These efforts drawn up and agreed by the government amount to 200 billion CFA francs, which will have to be found from somewhere,” said Soro, a former northern rebel leader who was appointed prime minister last year under a deal to reunite the country after a 2002-2003 war.”As a result we have decided to reduce state expenses, starting with cutting by half salaries for all government ministers …and managing directors of state or parastatal enterprises,” he said.Soro said running costs and investments in government departments would also be cut to help cope with the extra expenditure and reduction in state revenues resulting from the various concessions.Nampa-Reuters