DRC Petroleum Product Subsidies to Hit $400M Mark in 2023
The Democratic Republic of Congo (DRC) would not experience a shortage of stocks of petroleum products although it depends on the international situation.
These assurances were given by the Minister of Finance, Nicolas Kazadi, during a press briefing organized on Tuesday, November 28, 2023, at the initiative of his colleague from Communication and Media, Patrick Muyaya.
According to Nicolas Kazadi, the Congolese Government has already made some shortfall payments to oil companies.
Like last year, the cost of subsidizing petroleum products in the Democratic Republic of Congo is estimated at around $400 million.
“Provisions are being made so that there is no shortage of petroleum products in the Democratic Republic of Congo. We have made some payments and today we have finalized an arrangement to be able to finance this shortfall which again amounts to nearly 400 million USD. “, did he declare.
In his explanations, Minister Nicolas Kazadi noted that the Congolese Government had also paid the sum of 400 million dollars for shortfall in order to protect the purchasing power of the Congolese population.
“Last year [2022], we dedicated more than 400 million US dollars to limit the increase in fuel prices and preserve the purchasing power of the population. But in the same year, we also found that the sector was not completely transparent.
To this end, we have implemented reforms. We had an audit done. The audit which was always difficult to carry out by those who preceded us, we managed to carry out this audit.
We tried to bring more transparency to this shortfall and this allowed us to save more than $70 million in one year. This amount would have been paid if we were not vigilant. “, he explained.
Furthermore, the national financier of the Democratic Republic of Congo noted the fact that the Congolese Government has accumulated arrears in terms of subsidizing petroleum products.
This situation is due in particular to the persistence of the war in the east of the country but also following the organization of the next elections scheduled for December 20 of the current year.
“Today we have also accumulated arrears in terms of subsidies because this year 2023 has been a little more difficult than the previous one.
We are experiencing war on the one hand with the M23 and on the other hand, the reduction of a gap of around 20% in own revenues compared to the revenues expected during this year due in particular to the collapse of the cobalt price. And so, these elements of constraints have led us to accumulate arrears in terms of shortfall in oil subsidies. », affirmed Minister Nicolas Kazadi.
In recent days, the supply of petroleum products, particularly gasoline and diesel, has become very difficult in the Congolese capital. This situation has consequences on the cost of public transport, especially with bikers who double or even triple the price of the trip with complete impunity.
