GUINEA'S FUEL SUBSIDY: SOMETHING AFOOT - MAYBE

UNCLAS CONAKRY 000185 SIPDIS DEPT FOR AF/W AND EB/IFD/OMA DEPT FOR EB/IFD/OMA DEPT PLEASE PASS TO USTR FOR LAURIE ANN AGAMA DEPT PLEASE PASS TO COMMERCE FOR SALIHA LOUCIF TREASURY FOR OFFICE OF AFRICA NATIONS SIPDIS SENSITIVE E.O. 12598: N/A TAGS: ECON EPET PGOV GV SUBJECT: GUINEA'S FUEL SUBSIDY: SOMETHING AFOOT - MAYBE ¶1. (SBU) According to a letter dated March 4, from the Secretary General of the Ministry of Finance, Karamokobe Camara, to the National Director of Customs, the Government of Guinea is extending the fuel subsidy only through Saturday, March 8. The last subsidy contract ended February 29 and they are usually extended in one month increments. The Bureau Chief at Conakry's gas depot showed Econoff the original letter and provided him with a copy. ¶2. (SBU) Finance can always issue another letter to extend the subsidy, but the fact that this current extension is only for one week suggests that the Guinean Government may be gearing up to either reduce or eliminate the subsidy. Embassy Management Section contacts are telling procurement staff that the price will go up on Sunday. Commercial LES reports that vendors in the Medina Market, Conakry's largest open air market, were openly discussing the price increase and anticipating that it will be implemented on March 9. Interestingly, Mr. Camara told Econoff on March 5 that he planned to apply for a rush visa to travel to the US on March 8. However, the Embassy has not yet received his application from the Ministry of Foreign Affairs. CARTER