The decision recently announced by the Libyan "Dbeibah" government to restructure fuel subsidies will "certainly" have direct and indirect repercussions on Tunisia, the Arab Institute of Business Leaders (IACE) underlined in a note published on Saturday. Announced on January 10 to combat "excessive" smuggling into Libya, the decision is likely to increase demand for Tunisian fuels...This increased demand will have contradictory effects, adds the same source. On the one hand, "it will increase the State's tax revenues, since this product is monopolised by the State through the Tunisian Refining Industries Company (STIR)." On the other hand, "the rise in demand will lead to a rise in fuel imports, which will deplete the country's foreign currency reserves," the IACE pointed out. "Tunisia needs to preserve its foreign exchange reserves during the current economic climate in order to improve its economic growth and honour its commitments to pay a foreign debt of pound 850 million in February 2024." Furthermo re, "an increase in demand for fuel in Tunisia could lead to a rise in the cost of subsidies for Tunisia, which is currently endeavouring to balance its public finances," said the Institute. Besides the economic implications, it points to the social impact of such a decision, insofar as many Tunisians living near the south-eastern border regions "are rooted in informal channels," and "may find themselves in difficult situations." The IACE called in this regard, on decision-makers to act "quickly" and "urgently" to introduce provisions regarding renewables, with a view to enshrining national energy sovereignty and combating climate change. In Libya, the second cheapest country in the world after Iran, the current price of diesel per litre is $0.031 (960 millimes). Source: Agence Tunis Afrique Presse