Birame Souleye Diop clarifies Senegal fuel price and tax reform

Former Minister of Energy, Petroleum, and Mines Birame Souleye Diop has addressed controversies regarding potential fuel price increases in Senegal. Diop clarified that price adjustments would only have been necessary if alternative solutions failed and if increasing state subsidies exceeded national capacity.

According to Diop, a study commissioned by the President and the Prime Minister revealed that taxation on hydrocarbon products averages approximately 41%, with specific rates of 52% and 27%. In response, Prime Minister Ousmane Sonko had requested an analysis of reducing these tax rates to levels of 15%, 20%, or 25%.

The proposed reform aimed to move toward the ‘truth of prices’ by gradually reducing general subsidies and replacing them with targeted aid for specific sectors, including collective transport, freight, construction, and taxis. The plan also included simplifying parafiscal levies and reducing certain existing costs.