Last Update 18:39
Friday, 20 September 2019

Egypt's cabinet announces new increase in price of subsidised energy

Ahram Online , Thursday 29 Jun 2017
Fuel
People jostle for a fuel dispenser nozzle as a worker fills the tank of a car at a petrol station in Cairo (File Photo: Reuters)
Share/Bookmark
Views: 6535
Share/Bookmark
Views: 6535

Egypt’s cabinet announced on Thursday a cut in energy subsidies, effective immediately, resulting in an increase in fuel prices.

The price of 80-octane gasoline has increased from EGP 2.35 per litre to EGP 3.65.

The price of 92-octane gasoline has been raised from EGP 3.50 to EGP 5.

The price of gas cylinders has doubled from EGP 15 to EGP 30.

Prime Minister Sherif Ismail said on Thursday that the implementation of economic reform measures can no longer be delayed.

"The cost of fuel subsidies approaches EGP 150 billion, a cost the state cannot bear," Ismail said.

Ismail said that the cuts in energy subsidies will free up funds that will be redirected towards measures that would protect low-income citizens.

"Mostly there has been no justice in the distribution of subsidies. What we are doing now is correcting the allocation of subsidies as part of the country's economic reform programme," Ismail said.

The move comes as part of the government's five-year plan to gradually scrap its fuel subsidy bill from the state budget. The goal is to decrease subsidies from EGP 145 billion this fiscal year – which ends in June – to EGP 110 billion in the 2017/18 fiscal year.

Fuel subsidy cuts were part of an economic reform package adopted in July 2014 that aimed to ease the country's growing budget deficit.

The first increase of fuel prices came in November, shortly following the Central Bank of Egypt freely floated the pound.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
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.
Latest

© 2010 Ahram Online.