Egypt's 2015/16 petroleum subsidy spending down 23pct

Reuters , Monday 15 Aug 2016

Egypt's spending on petroleum subsidies fell by 23 percent in 2015/16 to EGP 55 billion ($6.27 billion), Tarek Al-Hadidi, head of state oil company EGPC, told Reuters on Monday.

Egypt has been trying to lower subsidies which eat up a big chunk of the state budget.

Petroleum product subsidies cost EGP 71.5 billion in 2014/15. Egypt aims to lower this to about 35 billion in the financial 2016/17 which began last month.

"Petroleum product subsidies have decreased to EGP 55 billion in 2015/16 from a targeted EGP 61 billion . The reason for the decrease is lower global oil prices," Al-Hadidi said.

In 2014 the government cut spending on energy subsidies, causing domestic prices of natural gas, diesel and other fuels to rise by as much as 78 percent.

The official exchange rate for $1 = EGP 8.78

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