5 As of 2019, the application of the formula for retail prices would imply a reduction in gasoline prices by 13 percent and an increase in diesel prices by about 14 percent. 6 See IMF 2015 for a summary of the distributional impact of fuel subsidies in Congolese households.
Why is non-oil revenue mobilization important in the Republic of Congo?
1. Non-oil revenue mobilization is a key strategic priority in the Republic of Congo. It would provide strong support for the financing of increased social demands, contribute to fiscal consolidation to restore debt sustainability, and rebuild buffers that can be used to increase resilience to future shocks.
Should Coraf refinery be restructured?
Reforming the CORAF refinery is key. The government needs to restructure the state-owned oil refinery CORAF to make fuel products competitive with the internationally imported petroleum products. This concern goes beyond the issue of applying the formula, given that he current formula allows CORAF to operate despite its inefficiency.
Who prepared this paper on the Republic of Congo?
This paper on the Republic of Congo was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on January 3, 2020. 1.