Egypt spends 30% less on fuel subsidies in fiscal H1

Reuters , Ahram Online , Monday 30 Mar 2015

People jostle for a fuel dispenser nozzle as a worker fills the tank of a car at a petrol station in Cairo (Photo: Reuters)

Egypt's fuel subsidy bill for the first half of the current fiscal year fell to 44.8 billion Egyptian pounds ($5.9 billion) from 64.5 billion a year earlier, the finance ministry said on Monday.

The figures are for the six months to December 31, 2014, as Egypt's fiscal year runs from July 1 to June 30.

Egypt cut fuel subsidies last summer, raising prices of gasoline, diesel and natural gas by as much as 78 percent.

International oil prices dwindled following a decision by OPEC to maintain production levels despite an increasing supply and slowing demand, a situation which proved beneficial to Egypt which heavily depends on oil imports.

The Egyptian government used $105 per barrel to forecast its expenses in 2014/15 fiscal year, the state budget showed.

Brent reached $55.99 a barrel on Monday at 12:28 GMT.

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