Oil ship (Photo: Reuters)
Egypt is negotiating with Saudi Arabia, Kuwait and the United Arab Emirates to supply it with petroleum products into 2014, Egyptian Petroleum Minister Sherif Ismail said at a news conference on Tuesday.
The three Gulf countries, which pledged to provide Egypt with $12 billion in aid after the army ousted Islamist president Mohamed Mursi on July 3, are already providing petroleum products until the end of December, Ismail said.
The Gulf countries have been sending diesel, gasoline and fuel oil to Egypt since July, he said.
Egypt is hoping to implement a smart card system at the start of 2014 for fuel purchases by vehicle drivers, Ismail said on Tuesday.
The finance ministry said in July it planned to phase in the card system gradually in July, August and September.
The government has been struggling to reduce the cost of its energy subsidies, which make up 20 percent of all state expenditure, without angering its citizens.
Egypt will repay 25 to 30 percent of its arrears to foreign oil companies in the near future, Ismail also said on Tuesday.
Egypt owes oil companies $6.2 billion, he said at a news conference.
Egypt has been struggling to meet soaring energy bills caused by the high subsidies it provides on fuel for its 85 million population.
This article was edited by Ahram Online.
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