In Algeria, 2026 began with a large transport strike across the country, triggered by a new traffic law imposing heavy fines, especially for bus and truck drivers, and an unannounced increase in fuel prices. The transport strike immediately paralyzed distribution and delivery operations, which had immediate negative consequences for the economy in general and the local steel industry in particular. The government was forced to start negotiations with transport unions and, according to market sources, an agreement has been reached and transport operations should return to a relatively normal state.
The Algerian government announced a new traffic law that local drivers called "repressive" due to high fines and severe penalties. Further frustration has arisen from the lack of public debate on the law, as well as the announced increase in fuel prices - up to Dh47/L for petrol, up to Dh31/L for diesel and with a 33 per cent increase in LPG prices.
The strikes have paralyzed urban and intra-city transport with participation exceeding 80-90 per cent in major transport hubs, according to local media. In addition to logistics disruptions in important segments such as the food industry, the impact was also felt in the steel sector. “Because of the strike, the country found itself in a holding pattern. This is how we started 2026 - there are no supplies, ships are idle,” a player in the Algerian steel market told SteelOrbis.
By January 8, according to sources and comments from steel market participants, the parties seem to have reached some agreement in the dispute. In particular, the government may allow an increase in transport tariffs so that the increase in fuel prices is effectively passed on to transport consumers. There also appears to be potential for a renegotiation of the most controversial and punitive sections of the new traffic law, SteelOrbis understands.
Early agreements suggest the state could allow formal increases in transit fares, effectively passing on the cost of fuel to passengers, and could revise the most punitive sections of the new traffic law.
