In Algeria, 2026 has started with a widespread transport strike across the country, which was sparked by the new traffic law implying high penalties particularly for bus and truck drivers, but also due to the unannounced hike in fuel prices. The strike of transport workers immediately paralyzed distribution and delivery operations, which had an immediate negative economic impact in general and on the local steel industry in particular. The government was forced to enter talks with the transport unions and, according to market sources, an agreement has been reached and transport operations are set to return to a relatively normal state.
The Algerian government had announced a new highway law which was described by local drivers as “repressive” due to its heavy fines and strict penalties. Addition frustration came from the lack of a public debate on the law and also on the announced fuel price hikes - to DZD 47/l for gasoline, to DZD 31/l for diesel and with a 33 percent increase for LPG fuel prices.
According to local media sources, the strikes paralyzed urban and intracity travels with participation exceeding 80-90 percent in major hubs. Besides disruptions in logistics in crucial segments like the food industry, the steel sector has also been feeling the impact. “Due to the strike, the country was in stand-by. This is how we started 2026 - no deliveries, vessels are on demurrage,” an Algerian steel market player told SteelOrbis.
By January 8, according to sources and comments from steel market players, the sides seem to have reached some agreement in the dispute. In particular, the government may allow an increase in transportation tariffs, so that the fuel price hikes would be effectively passed on to the consumers of transport services. In addition, there seems to be potential for a revision of the most controversial and punitive sections of the new traffic law, SteelOrbis understands.
The early agreements suggest that the state may allow an official increase in transport fares - effectively passing the fuel cost on to commuters - and may revise the most punitive sections of the new traffic law.