Egyptian Prime Minister Ibrahim Mahlab said Saturday that the new increase Friday in fuel and electricity prices aims to achieve social justice.
The increase in fuel and electricity prices comes after Egypt’s newly elected President Abdel-Fattah El-Sisi ratified a new annual budget.
The new budget managed to trim the country’s deficit by LE48 billion, now registering LE240 billion, or 10 percent of Gross Domestic Product (GDP), featuring a LE44 billion cut in energy subsidies.
“For over 40 years no one has touched the energy subsidies portfolio, which lead to the increase in the [budget] deficit and poverty,” Mahlab said at a press conference.
Mahlab added the increase in energy prices would guarantee an extra LE22 billion to the education and health sectors.
The premier said that El-Sisi, in agreement with the people, is fighting Egypt’s current crisis starting with economic, social and political reforms.
“We will continue to be a war cabinet and we will wage our war [on Egypt’s crisis] with the cooperation of the Egyptian people,” Mahlab added.