A clampdown on state spending was an effort by Yemen's government this month to win public support before its biggest economic reform in years: higher fuel prices. But an angry public may not be won over.
The Middle East and North Africa (Mena) region accounted for nearly half of the $492 billion global spending on energy subsidies, making the burden on public resources quite substantial, according to a report.
Gulf Air wants the government to subsidise 30 per cent of its fuel costs, to enable it to achieve an operating profit for the first time in years.
The proposal has already been tabled with the Cabinet, Gulf Air
Libya's currency is under heavy pressure as a breakdown in security and a collapse of oil revenues due to port blockades have badly disrupted public finances and an economy already burdened by exploding state salary and subsidy bills.
The Bahrain government had allocated BD1.535 billion ($4.05 billion) last year for subsidies and support schemes, Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa has told MPs in writing.
Subsidies included BD67 million for f
Former army chief Abdel Fattah Al-Sisi has kept Egyptians guessing about how he will handle energy subsidies, one of the most explosive issues coming his way if, as seems certain, he is elected president next week.
Etihad Airways said today that it had received financial support from its shareholder in the form of equity capital and shareholder loans, but gets no government subsidy.
The airline was reacting to reports in the Australian Finan
Tunisia will raise subsidised petrol prices by 6.3 percent in the coming days and also decrease subsidies for bread, sugar and other basic materials to trim its worsening budget deficit, the government said.
Subsidies are a sensit
Fossil fuel subsidies cost governments in emerging markets more than $500 billion every year and are a major contributor to climate change, according to the International Energy Agency (IEA) and International Monetary Fund (IMF).
IMF chief Christine Lagarde urged Arab countries going through democratic change to phase out costly subsidy systems on Monday, but drew a cautious response from regional finance ministers wary of the social impact of such steps.