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Viewing cable 09ABIDJAN49, GOVERNMENT CUTS GAS PRICES

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Reference ID Created Released Classification Origin
09ABIDJAN49 2009-01-22 08:35 2011-08-24 16:30 UNCLASSIFIED Embassy Abidjan 
R 220835Z JAN 09
FM AMEMBASSY ABIDJAN
TO SECSTATE WASHDC 4871
 
UNCLAS ABIDJAN 000049 
 
 
E.O. 12958: N/A 
TAGS: PGOV ECON SOCI IV
SUBJECT: GOVERNMENT CUTS GAS PRICES 
 
REF: A. 08 ABIDJAN 480 
     B. 08 ABIDJAN 475 
     C. 08 ABIDJAN 467 
     D. 08 ABIDJAN 452 
 
 
1. The Government of Cote d'Ivoire announced on January 14 a 
4 to 8 percent reduction in the price of gasoline and lamp 
oil.  This measure, which went into effect at midnight on 
January 16, reflects the decrease in the price of oil on the 
international market (USD 36.43 a barrel on January 14). 
 
2. The price of unleaded gas went down by 6.4 percent to USD 
1.30 (CFA 650) a liter or USD 4.92 a gallon. The price of 
diesel decreased by 8 percent to USD 1.15 (CFA 575) a liter 
or USD 4.35 a gallon.  The price of lamp oil was reduced by 
4.2 percent to USD 0.90 (CFA 450) a liter or USD 3.40 a 
gallon.  The price of cooking gas remains unchanged.  Diesel 
and lamp oil are products used by the nation's poor.  Diesel 
is used by public transportation, taxis, and most drivers, 
while lamp oil is an essential product for rural residents. 
 
3. The government raised gasoline prices on July 7 by as much 
as 44 percent in order to reflect the increase in the price 
of oil on the global market, which had reached USD 145 a 
barrel (See reftel D).  Transport workers and members of the 
country's largest federation of workers went on strike July 
17-18 to protest the price increases (see reftels B and C). 
On July 20, the government announced reductions in gas prices 
in response to the strikes (see reftel A).   The new cuts 
announced on January 14 are likewise in reaction to demands 
by transport and consumers' associations.  For several weeks, 
they have been threatening to organize demonstrations unless 
the government announced new cuts in light of the decrease in 
the price of crude oil on the world market. The government 
was prevented from making greater cuts due to budgetary 
constraints.  Unified revenue collection will only go into 
effect on February 2 in the areas of the country controlled 
by the former rebels.  In addition, the government is facing 
increased costs associated with the country's exit from its 
political crisis, including the cost of identification of the 
population and voter registration. 
 
 
NESBITT