FYI - the IMF’s Technical Assistance report on Mali is recommending an improved fuel pricing formula. Like subsidy removals, a new pricing formula will raise cost of fuel. This may be helpful for reducing the volatility of fuel prices in Mali, but the immediate impact is higher fuel costs. The IMF encouraged “uniformity” on fuel taxes in this report – meaning that other fuels, like kerosene, will also see price increases. Although the IMF does acknowledge that kerosene prices disproportionately impact the poor, it was unclear if they were recommended a lower tax on this product.
I think raising government revenues is critical, but should not be done at the expense of the poor.
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