Popular revolts sweeping the Arab world are throwing up a financial dilemma for struggling governments who want to scrap expensive energy subsidies but fear they will provoke riots if they do.
Regimes under pressure from tough economic conditions and high oil prices have pulled back from existing subsidy cut plans or shied away from new ones for fear of angering their newly emboldened populations.
Analysts say the trend could badly damage the region’s economic prospects and pull precious oil away from the global crude market because of high demand in Arab states where prices of fuel for cooking and heating are kept cheap.
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