Egypt’s consumption of high quality octane 95 petrol fell drastically to 5,000 tons during the first nine months of the current fiscal year, which started in July 2013.

According to a statement the petroleum ministry released on Wednesday, the fiscal year of 2012/13 saw a 40 percent drop in consumption of octane 95 as compared to the prior fiscal year. The drop was expected following the increase in price; in late 2012, the government increased the price of the highest quality gas, octane 95, to LE5.90 ($0.84) per litre instead of the subsidised price of LE2.75 ($0.39) per litre.

Burdened by a huge subsidy bill which eats into the national budget, the government has announced intentions to cut energy subsidies as means to reducing the deficit.

It also raised prices for cement companies that use mazut fuel for production by 130 percent, from LE1,000 ($143) per tonne to LE2,300 ($328) per tonne.

Energy subsidies are expected to reach LE130 billion ($18.6 billion) by the end of this month as the fiscal year ends. The budget for next year shows a 20 percent decline in the budgeted energy subsidies to LE104.5 billion.

Finance minister Hany Kadry said in May that the first phase of the energy reforms could begin as early as next autumn, when the government introduces a smart card system that would control the amount of fuel distributed at a subsided price.