Tawile: The Ministry of Energy Has Proved That It Is Not Able to Control the Market

  • Economics
Tawile: The Ministry of Energy Has Proved That It Is Not Able to Control the Market

Head of the Kataeb’s Economic and Social Council, Jean Tawile, warned that creating parallel subsidized and unsubsidized markets heightens the risks of cronyism and favoritism, since businesses will maneuver politically to be among those getting the cheaper, subsidized fuel.

“The Ministry of Energy has proved that they are not able to control the market,” Tawile told L’Orient Today.

“People who want to get the diesel at a subsidized rate will have to go back to the political class, and this opens the door for clientelism and nepotism and privileges,” he said.

There is also a risk that some importers could import subsidized fuel, but then illegally sell it to businesses for fresh dollars, earning exorbitant profits at the expense of the central bank’s shrinking dollar reserves.

 

Source: L'Orient Today