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.