Last Update 15:57
Tuesday, 15 October 2019

No firm date for next fuel-subsidy cut, but process is unstoppable: Egypt's petroleum minister

Tarek El-Molla told journalists on Wednesday that the scrapping fuel subsidies has already been agreed and any delay would place a 'heavy burden' on the state budget

Ahram Online , Wednesday 28 Jun 2017
A female employee fills the tank of a car at a petrol station in Cairo, Egypt, February 24, 2016 (File photo: Reuters)
Views: 5284
Views: 5284

Egypt's Petroleum Minister Tarek El-Molla said on Wednesday that the government has not set a date for the next rise in fuel prices but the phasing out of fuel subsidies is inevitable and should not be delayed, state-run news agency MENA reported.

Following a meeting with Prime Minister Sherif Ismail, Molla told journalists that the government's five-year programme to scrap fuel subsidies was already approved by parliament and so there is no reason to delay implementation.

The minister said any delay in the decision to end fuel subsidies would place a "heavy burden" on the state budget.

Fuel subsidy cuts were part of an economic and fiscal reform package agreed in 2014 that aimed to ease the growing budget deficit.

A five-year plan was created to gradually scrap fuel subsidies, a policy that sparked fierce debate in political circles.

In November 2016, following the decision to float the Egyptian pound, the government raised fuel prices.

With the start of the new fiscal year on 1 July, further cuts in fuel subsidies are expected.

Members of parliament debated the issue of fuel subsidies earlier in June, and discussions will resume in early July.

Last week, parliament approved the draft general budget for 2017/18, referring it to the State Council for approval. Egypt has allocated 145 billion Egyptian pounds ($8 billion) for fuel subsidies in its budget for the 2017-18 fiscal year.

Parliament also made recommendations on the draft budget, which totals EGP 1.206 trillion.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.