Newly appointed Finance Minister Momtaz El-Said on Thursday agreed to provide Egypt's state-run General Petroleum Corporation (EGPC) with some $100 million with which to purchase needed petroleum products and diesel fuel for electricity generation.
According to El-Said, a joint committee between the finance and petroleum ministries will continue to meet the state's needs for petroleum products.
In June, Egypt's government announced plans to slash fuel subsidies by 27 per cent in the 2012/13 financial year and introduce a new coupon system to ensure that subsidies go to those who most need them.
The amount spent by the state on fuel subsidies will fall to LE70 billion in the current financial year, down from LE95 billion the year before, accounting for just shy of half – 48 percent – of Egypt's total LE145.8 billion subsidies bill.
In the 2010/11 financial year, Egypt's finance ministry pumped a total of $5.7 billion into the EGPC.