Subsidies on high-end Octane 95 were lifted last night. One litre now costs LE5.85 instead of LE2.75. The move is part of the government's plan to rationalise fuel subsidies. Removing the subsidy on Octane 95 fuel would save the state LE55 million per year, Prime Minister Hisham Kandil had told Reuters. That is a meagre sum considering that fuel subsidies reached around LE115 billion in fiscal year 2011/12 at a time when the government had been targeting LE95 billion. And although the government is targeting to cut fuel subsidies to LE70 billion in the 2012/13 budget, observers believe that not enough measures have yet been taken to enable it to reach that target. No increase in the price of other more widely utilised gasoline products is scheduled soon. However, government officials had previously said drivers will receive a certain amount of subsidised fuel through a coupons system. Any excess quantities will be bought at market price. But, to date, no details have been announced regarding the coupons system nor the market price of other gasoline products.
