Egypt expresses 'deep dissatisfaction' to Netherlands over embassy attack    Global pressure mounts as Gaza fighting intensifies and death toll surges    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    At TICAD, Egypt's education minister signs pacts with Casio, SAPIX    Egypt holds special importance for our investments across diverse sectors: Japanese minister    Cairo, Tokyo sign LOI to expand educational cooperation, support for persons with disabilities    Madbouly invites Japanese firms to establish industrial zone in SCZONE    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Al-Sisi meets Qatar PM, Bahrain security adviser to discuss Gaza crisis, regional stability    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    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.



The diesel crisis: Petroleum minister's words versus reality
Published in Daily News Egypt on 12 - 02 - 2013

Osama Kamal, Egypt's minister of petroleum, said Tuesday that Egypt currently finds itself in the midst of a diesel crisis, adding however that this was a result of high levels of smuggling as opposed to a shortage in supplies, and that Egypt was distributing 35,000 tonnes of diesel each day at an estimated cost of over $35m.
In statements made Tuesday during a yearly conference held for petroleum interests from various Arab countries, Kamal stated that Egypt planned on instituting its smart card programme in order to help better distribute petroleum resources between the months of April and July.
The government has attempted to decrease its funding for fuel subsidies which total one-fifth of Egypt's GDP, however worker strikes have prevented such policies from being implemented.
Government funded petroleum subsidies for the first half of the 2012-2013 fiscal year totaled EGP 55bn ($8bn), with costs expected to reach EGP 120bn by year's end.
Repeated fuel shortages have stirred up anger amongst Egyptian drivers and caused a number of complications for Egypt's agricultural and industrial sectors.
He added saying that, “There does indeed exist a diesel crisis within Egypt that we cannot ignore, however it is not a diesel crisis per say as much as it a problem with distribution. We distribute 35,000 tons of diesel a day at a cost of nearly $35bn."
He added that the Ministry of Petroleum planned to address the crisis by re-routing fuel shipments headed for stations known to engage in smuggling to other stations that do not do so.
Dakar Abdellah, member of the board of directors for the Egyptian Federation for Construction and Building Contractors (EFCBC), and a member of the Construction Committee for the Egyptian Businessmen's Association (EBA), said that he did not agree with the minister's statements, which he said were not received well by the country's contracting sector.
He added that all in Egypt were aware of the extent to which the diesel crisis had affected all parts of the country and put a stop to a number of commercial and development projects, in particular with regards to road work being carried out inside the country.
Abdellah went on to describe statements made by officials from the petroleum ministry regarding the crisis as delusional and unconvincing.
With regards to the price of the dollar in Egyptian pound and its effect on Egyptian fuel consumption he said, “the decrease in the price of the pound has effected all aspects of the Egyptian economy, however with regards to petroleum, we continue to export at the same rate that we import, and in this sense we have benefitted from the rise in the price of the dollar".
Since 31 December, the price of the Egyptian pound has decreased 8% in relation to the dollar. This has happened as clashes and instability continue to grip Egypt, stalling Egypt's acceptance of its long awaited pending IMF loan.
Egypt has also seen a decrease in the level of its foreign currency reserves which have reached $13.6bn, less than what is needed to cover the cost of imports over the next three months. This comes as the amount of dollars in circulation in Egypt has decreased markedly, as investors and tourists have become hesitant to travel to and do business in the country.
However Kamal commented Tuesday saying: “We still possess the necessary amount of financial resources needed to continue importing petroleum products."


Clic here to read the story from its source.