The government rejected Tuesday the rumors over the governmental intention to completely lift the oil subsidies provided to the Egyptian citizens, describing them as completely false. Petroleum and Mineral Wealth Ministry said, in a statement issued today, that it resumes providing all Egyptians with their share of oil regularly with no obstacles. The ministry stressed on the fact that the state will not lift the subsidies completely, however, it plans to reduce the oil subsidies gradually until 2019, while keeping low percentage of subsidies though. "The government is eager to provide local market with all its needs of petroleum products," the statement reads, mentioning that Egypt is intensifying the digging works, to support oil reserves and increase levels of local production. In July 2014, the government reduced oil subsidies for the first time, by percentage ranged between 40-78 percent, to witness another decrease between 30-47 percent in November 2016, after liberating the currency. International Monetary Fund (IMF) approved last year to loan Egypt 12bln $ over three years, in order to support the reform program of the government, and rebalance the Egyptian pound before the U.S, dollar. State's subsidies in the public budget of the fiscal year 2017-2018 reached 340bln EGP (18.7bln $). Subsidies of petroleum products reached 35.043bln EGP in fiscal year 2016-2017, 26.661bln EGP lower than 2015-2016.
