Egypt's bourse to launch derivatives within 6 months – vice chair    Global pressure mounts on Israel as Gaza death toll surges, war deepens    Egypt targets 7.7% AI contribution to GDP by 2030: Communications Minister    Irrigation Minister highlights Egypt's water challenges, innovation efforts at DAAD centenary celebration    Egypt discusses strengthening agricultural ties, investment opportunities with Indian delegation    Al-Sisi welcomes Spain's monarch in historic first visit, with Gaza, regional peace in focus    Cairo governor briefs PM on Khan el-Khalili, Rameses Square development    El Gouna Film Festival's 8th edition to coincide with UN's 80th anniversary    Egypt expands medical, humanitarian support for Gaza patients    Egypt condemns Israeli offensive in Gaza City, warns of grave regional consequences    Cairo University, Roche Diagnostics inaugurate automated lab at Qasr El-Ainy    Egypt investigates disappearance of ancient bracelet from Egyptian Museum in Tahrir    Egypt launches international architecture academy with UNESCO, European partners    Egypt signs MoUs with 3 European universities to advance architecture, urban studies    Egypt's Sisi, Qatar's Emir condemn Israeli strikes, call for Gaza ceasefire    Egypt condemns terrorist attack in northwest Pakistan    Egyptian pound ends week lower against US dollar – CBE    Egypt hosts G20 meeting for 1st time outside member states    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt seeks Indian expertise to boost pharmaceutical industry    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    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.



Fuelling fears
Published in Al-Ahram Weekly on 17 - 02 - 2005

A sudden shortage in gasoline has prompted anxiety among consumers about an imminent price increase, Sherine Nasr reports
Consumers were recently confronted with an unexpected day-long sudden shortage in 90 octane gasoline, reported in most gas stations throughout Cairo. Rumours quickly spread about an impending increase in the price of gasoline, a politically sensitive move which has been anticipated for quite some time now.
On Wednesday 9 February, many taxi drivers as well as private car owners reported having great difficulty in finding 90 octane gasoline available. The shortage wreaked havoc in the capital's transportation network. Taxi drivers promptly reacted by refusing to drive to take passengers while mothers taking their children home from school had a hard time trying to reach their destination. "For more than two hours, I tried to stop a taxi, but in vain. Eventually, one agreed after a good deal of bargaining," said a 30-year-old mother of two who was heading from Zamalek to Faisal Street in Giza.
In the meantime, many private car owners said they had to go from one fuel station to another, however, they neither could find 90 octane gasoline nor a reasonable explanation as to why it was not available.
"Early that day, we were given notice not to sell 90 octane gasoline," said Sayed Farouk, manager of Misr fuel station at Ahmed Said Street downtown. He added that he received orders by word of mouth from inspectors of the Egyptian General Petroleum Corporation (EGPC), the authority responsible for distributing gasoline and other oil products to the two state-owned gasoline distribution companies, Misr and CO-OP, as well as the private oil marketing companies.
"All the fuelling stations in the area complied with the decision. However, in less than 24 hours, the decision was abolished in the same manner it was applied, and we resumed pumping 90 octane gasoline."
In the meantime, Prime Minister Ahmed Nazif issued a statement making it clear that the government has no intention to increase the price of 90 octane gasoline, which is currently LE1 a litre, and that this goes in line with the government's strenuous attempts to ease the economic burden on limited-income citizens.
"80 octane gasoline is available in all the stations. What happened is that some fuelling stations stopped pumping 90 octane gasoline because they were facing some technical problems," Cabinet spokesman Magdi Radi was quoted as saying.
Similar statements were made by Minister of Petroleum Sameh Fahmi on Monday before the People's Assembly. "Replacing 90 octane gasoline with 92 or 95 octane gasoline is out of the question," he said.
But the argument laid out by government officials was hardly convincing to the average Egyptian. Consumers quickly devised their own interpretation for the shortage -- the disappearance of 90 octane gasoline combined with the elaborate promotion of a more expensive 92 octane gasoline, was simply an attempt on part of the government to increase the price of gas.
According to a retail manager at ExxonMobil who preferred to remain anonymous, the government is avoiding openly declaring a rise in fuel prices, but is phasing out 90 octane gasoline to camouflage such an increase.
"The price of 90 octane gasoline will not increase, however, the cheaper product will gradually and systematically disappear from the market," said the manager, who volunteered the information that 90 octane gasoline is already no longer available in 50 major fuelling stations in Cairo and Alexandria. These stations are both public and private."
A few months ago ExxonMobil decided to stop pumping 90 octane gasoline in 17 of its "A Class" fuelling stations in Zamalek, Maadi, Heliopolis and the Ring Road.
It is worth noting that during the second quarter of last year, EGPC introduced the more expensive, 92 octane gasoline sold for LE1.40. At that time, the reasons given for introducing the new product was that it is more environmentally friendly and better suited to the specifications of modern vehicles.
"It started as an option to customers who would like to use a higher quality gasoline for their expensive vehicles. But eventually, only 92 octane gasoline will be available," he said.
Near the end of last year, the price of diesel abruptly jumped 50 per cent by government decree, rising from 40 to 60 piastres. Diesel is mostly used by buses, whether public or private, and trucks.
"The move was angrily received by the public and transportation fares were automatically raised by at least 25 per cent," said the manager.
Such reactions to fuel increases have long been studied and anticipated by public officials as well as oil experts.
It is hard to deny that the government heavily subsidises fuels. According to ExxonMobil manager, the government foots 40 per cent of the bill for each litre of 90 octane gasoline. "It is also hard to ignore that fuel prices in Egypt are much cheaper than those in other Arab countries," said the manager, who questioned a policy of subsidising gasoline mostly consumed by private car owners of the middle and upper classes.
"Support should go to those who really need it. The government will continue to subsidise 80 octane gasoline, sold for 90 piastres as it is the main fuel for taxis and minibuses."
As for 90 octane gasoline, there are strong indications that it will slowly fade into oblivion, hopefully unnoticed until it ceases to exist.


Clic here to read the story from its source.