The new draft law on fuel in Algeria has caused great concern about the fate of Algerian oil wealth. In this context, hundreds of citizens gathered last Sunday in front of the Parliament House in Algiers where they protested against this text explaining that the current government does not have the legitimacy to approve it.
Last Friday, the protesters of the People's Movement also protested against the bill explaining that it is unthinkable that 'the oil wealth of future generations to foreigners' and saying that the government seeks to sell this same wealth to foreigners. The popular rejection of the fuel bill has been widely supported by political parties, trade unions and even candidates for the presidency; all those concerned denounced this text, which comes just weeks before the presidential election.
Energy Minister Mohamed Arkaab's statements worsened the controversy after he said the text was drafted in collaboration with five global oil groups. Recall that the text brings new amendments concerning the tax side for foreign companies and the private party on contracts signed with the Algerian state.
In terms of taxation, international companies have obtained further declines in relation to their annual earnings, while some costs, such as those relating to professional activity, have been canceled.
For contracts signed with the State, the benefits scheme, currently used for the benefit of the distribution of production, will be canceled.
According to what is relayed in Algerian oil circles, the new law has no connection with the Algerian political situation, but it would be dictated by the economic crisis in the country that is seeking new resources to export its products following the stabilization of the country.
Algeria produces about 1.1 million barrels a day, which makes it unable to supply its quota to the Organization of the Petroleum Exporting Countries (OPEC). In terms of gas production, the country produces about 100 billion cubic meters per year, of which 45 billion cubic meters for internal consumption, which reduces the margin of maneuver for exports according to experts.
English 
العربية