Egypt will gradually increase fuel prices to end subsidies by December 2025: PM Madbouly

Ahram Online , Wednesday 24 Jul 2024

Prime Minister Mostafa Madbouly underscored in a press conference held at New Alamein City the gradual increase in petroleum products pricing and managing inflation rates to ease the burden on citizens, aiming to reach a break-even point for fuel subsidies by December 2025.

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PM Madbouly announced that a biannual report on each ministry's achievements would be presented to the parliament, focusing on economic issues and the recent electricity and medicine crises.

He emphasized that the government is committed to providing a biannual report to the parliament on its program, with monthly monitoring of each ministry's achievements to track any deviations from the program and make necessary adjustments.

Madbouly stated that all remarks made by parliament members regarding the government's program would be addressed in the upcoming period.

He instructed the ministers to submit detailed plans for their respective areas of responsibility within the government's program.

The prime minister also highlighted the importance of ministers’ field visits in the coming period, ensuring that these visits are not just due to the newly high-spirited government.

Electricity and medicine crisis
 

The prime minister stated that the government started suspending load shedding last Sunday, thanking all workers in the ministries of electricity and petroleum.

He noted that the electricity consumption levels have surpassed expectations due to the heatwave, leading to a record daily consumption rate of 38.5 gigawatts, which could cause power outages in some areas.

He revealed that, due to the high temperatures, the consumption of various forms of fuel has reached its maximum limit, including natural gas, mazut, and diesel.

Madbouly highlighted that Egypt bears significant costs to ensure a continuous 24-hour electricity supply without interruptions.

He noted that Egypt would need an additional 4 gigawatts next summer to avoid power issues, with 2650 megawatts expected to come online soon and 1350 megawatts by next summer.

Furthermore, Madbouly discussed accelerating electrical interconnection with neighbouring countries to achieve mutual benefits during peak consumption periods, reiterating the government's commitment to resolving the electricity crisis by the end of the year.

For the medicine crisis, Madbouly addressed the ongoing efforts to resolve the medicine shortage, with an expected resolution within three months.

Regional challenges
 

Madbouly acknowledged the continuous external regional challenges and the state's commitment to its declared plans despite global challenges.

He also announced a plan to settle the financial dues owed to foreign partners in the petroleum sector. The agreement includes fulfilling all the state's commitments to the Italian company Eni to enhance exploration activities in the upcoming period.

Madbouly highlighted the $14.2 billion reduction in Egypt's external debt value over the past five months.

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