Algeria’s oil minister on Sunday called on OPEC to cut production and raise the price of oil, according to the Associated Press.
The call was made by Youcef Yousfi to OPEC, of which Algeria is a member, and comes at a time when the country is struggling to cope with the marked fall in oil prices.
“For us, OPEC has to intervene to correct the imbalance and cut production to bring up prices and defend the income of its member states,” Yousfi said in remarks carried by the state news agency.
The report said that while Algeria has some $200bn foreign reserves, enough to cover imports for the next several years, it is heavily dependent on its oil revenue which provides 97% of its hard currency income and 60% of the budget.
In a cabinet meeting Tuesday, President Abdelaziz Bouteflika for the first time expressed concern over the “worrisome” situation and made vague promises of cost-cutting.
The first of such austerity measures came on December 27th when Prime Minister Abdelmalek Sellal said there would be a freeze on public sector hiring in 2015.
Around 60% of the jobs in the country are public sector roles.
Major infrastructure projects, such as public transportation in Algiers and highways in the countryside are also expected to be put on hold.
