Egypt's fuel subsidies drop 42% in first half of fiscal year: Reuters

Ahram Online , Thursday 25 Feb 2016

Gas station (Reuters)
Gas station (Reuters)

Egypt's fuel subsidies fell 42 percent to EGP 26 billion in the first half of the current fiscal year, down from EGP 45 billion in the same period a year earlier, Reuters reported on Thursday citing an anonymous official.

Oil has lost around a third of its value in global markets since mid-2014 with crude brent hitting $34.1 a barrel on Thursday on abundant supply and slowing demand.

Egypt embarked on a fiscal reform programme in the fiscal year 2014/15 raising new taxes including the property tax and cutting energy subsidies to clench on a growing budget deficit.

Fuel subsidies are forecasted at EGP 61 billion for the current fiscal year ending on 30 June.

On Wednesday, President Abdel-Fattah El-Sisi said that over the last two years Egypt has consumed petroleum products at a cost of EGP 384 billion ($49 billion), of which the Arab Gulf countries have contributed EGP 51 billion. 



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