CEC submits six proposals to Prime Minister for economic enhancement    Environment Minister discusses private sector's role in advancing Egypt's industrial environmental integration    Empowering Egypt's expats: A national wealth deserving strategic investment    Egypt's Labour Minister concludes ILO Conference with meeting with Director-General    KOICA, EAPD partner to foster sustainable development in Africa    Egypt's largest puzzle assembled by 80 children at Al-Nas Hospital    Egypt to host 1st New Development Bank seminar outside founding BRICS nations    Egypt's Al-Sisi, Azerbaijan's Aliyev advocate for ceasefire in Gaza    BRICS Skate Cup: Skateboarders from Egypt, 22 nations gather in Russia    Egypt gets initial approval for $820m IMF loan disbursement    Pharaohs Edge Out Burkina Faso in World Cup qualifiers Thriller    Lagarde's speech following ECB rate cuts    US, 13 allies to sign Indo-Pacific economic agreements    Acceleration needed in global energy transition – experts    Sri Lanka grants Starlink preliminary approval for internet services    China-Egypt relationship remains strong, enduring: Chinese ambassador    Egypt, Namibia foster health sector cooperation    Egypt's EDA, Zambia sign collaboration pact    Madinaty Sports Club hosts successful 4th Qadya MMA Championship    Amwal Al Ghad Awards 2024 announces Entrepreneurs of the Year    Egyptian President asks Madbouly to form new government, outlines priorities    Egypt's President assigns Madbouly to form new government    Egypt and Tanzania discuss water cooperation    Grand Egyptian Museum opening: Madbouly reviews final preparations    Madinaty's inaugural Skydiving event boosts sports tourism appeal    Tunisia's President Saied reshuffles cabinet amidst political tension    Instagram Celebrates African Women in 'Made by Africa, Loved by the World' 2024 Campaign    Egypt to build 58 hospitals by '25    Swiss freeze on Russian assets dwindles to $6.36b in '23    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Gasoline shortage hits Egypt, tempers flare
Published in Daily News Egypt on 23 - 03 - 2012

CAIRO: Across Egypt, long lines of cars and trucks snake around the corner from gas stations, drivers spend the night in their vehicles waiting for fuel at the pumps, and gas stations attendants complain of receiving only half their usual quantity of fuel — or none at all.
Days into an increasingly acute fuel shortage, Egyptians are starting to feel the squeeze. Drivers are searching frantically for fuel, only to find gas stations sold out of key grades of gas. In rural areas, witnesses say scuffles and knife fights have broken out among frustrated drivers. Some have even fired guns in the air.
The reasons behind the shortage — or even if there is one — are not clear. The government blames any shortfall on profiteers reselling subsidized fuel on the black market. Many Egyptians, however, accuse the authorities of trying to cover up what they say is the government's mismanagement of an ailing economy.
Petroleum Minister Abdullah Ghorab flatly dismissed talk of a shortage, saying fuel supplies exceed demand. He said the crisis stems from "mistrust between the government and the citizens," according to the state-run MENA news agency.
Another Petroleum ministry official, Hani Dahi, was also quoted by MENA as saying that there is "a rise in the illegal use of fuel" and calling for tighter security measures to prevent black market dealers selling subsidized fuel at higher prices.
However, the manager of one gas station in Fayoum, a city south of Cairo, put the blame squarely on the government's shoulders and its stewardship of the economy.
"I used to get a daily supply of 30,000 liters (7,900 gallons) of diesel, now I get 13,000 every three days," said the manager, who asked not to be identified. "Any talk about smuggling is a sheer lie because if there is enough fuel in the market, none would buy from the black market."
"Why blame the people? Why don't you put it as simple as this: We don't have foreign currency to buy the fuel," he added.
Egypt's economy has been badly battered by the political turmoil following last year's uprising that ousted longtime leader Hosni Mubarak. Political instability and violent street protests over stalled reforms have hammered the tourism industry, a key source of foreign currency, and caused foreign investment to plummet.
Egypt's budget deficit is expected to reach LE 114 billion ($19 billion) in the fiscal year to June 30, some 8.7 percent of gross domestic product. The country is negotiating a $3.2 billion loan from the International Monetary Fund, and looking at other steps like selling state-held land, to help patch up the budget.
The fuel crisis is the second in Egypt since January, and may open the backdoor to changing the state subsidies on fuel and other basic commodities, which cost the government some LE 100 billion a year. On Thursday, the petroleum minister used the current crisis to call for revisions to the subsidies.
Two months ahead of presidential elections, the shortage also has fueled finger pointing between Egypt's military-backed government and Islamist-dominated parliament. Some lawmakers accused the government of fabricating the crisis to embarrass parliament.
"The military council, through its government, is telling the people, 'Look, your representatives are not able to solve your problems,'" said Essam Sultan, a lawmaker from the Islamist Al-Wasat party.
The country's wider economic malaise is increasingly taking a toll on Egyptians in their daily life, with rising inflation and unemployment now compounded by the fuel shortage.
In Cairo, several gas stations were shuttered Thursday, while lines of cars waited for hours in line at those still pumping.
In Fayoum, a gas station assistant described a daily scene of dozens of cars parking overnight at the station until a fuel truck arrives.
"People amass like ants. All carrying plastic jerry cans and attack," he said. The worker, who asked not to be identified, added that on one occasion angry taxi drivers opened fire in the air while police stood nearby. "The crisis has turned people into thugs."


Clic here to read the story from its source.