Cabinet under fire — again    GERD: The Washington briefing    Cabinet approves decision on conditions for granting Egyptian nationality to foreigners    Recapturing Al-Montazah's splendour    UAE's Al Nowais to build solar, wind plants in Egypt    Google Doodle celebrates Iraqi singer Affifa Iskandar    Champions Al Hilal eye fourth Asian football title as 2020 groups drawn    Anti-corruption system in Egypt witnesses huge development: ACA chairman    US defense policy bill requires nuclear power inspections for Saudi Arabia: Sources    Algerian court convicts, imprisons 2 former prime ministers for corruption in landmark trial    Mohamed El-Erian approves buying Saudi Aramco shares    Rashford can be as good as Ronaldo: Man United boss Solskjaer    Egyptian Premier League fixtures (7th matchday)    Americans still pretty happy with their private health insurance    Erdogan says Turkey aims to settle 1 million refugees in Syria offensive area    Egypt's Ahly close to signing former Zamalek, Aves player Kahraba    S.Korea's Moon to visit China for trilateral with Japan amid N.Korea tension    European markets decline ahead of U.S.-China tariff deadline, UK election    Egypt's Sharm El-Sheikh tops fastest growing African airports in 2019    Gold prices little changed ahead of Fed meeting, U.S. tariff deadline    Veteran Egyptian filmmaker Samir Seif passes away at 72    Egypt's FM Shoukry, Pompeo follow up on GERD talks, bilateral relations, regional developments    Here is the full list of Golden Globes 2020 nominations    Egypt's President Sisi urges improving ways to identify sport talents    Health insurance system to be launched in Upper Egypt, South Sinai in March    Egypt's Sisi directs further efforts to develop higher education    Half of lymphoma patients alive three years after new cell therapy treatment: Study    Even being big, burly one needs his mother    Egypt's Cabinet denies reports on increasing Jan. train fares    Egypt Zamalek's new coach eyes winning start in Champions League against 1º de Agosto    WHO decries "collective failure" as measles kills 140,000    Rate of HIV infections in Egypt around 0.02% – minister    Adam Sandler threatens to make ‘so bad' movie if he doesn't win Oscar    Egypt's Tahrir Square among top Reuters photos of a decade    Egypt names 16 new governors ahead of anticipated Cabinet reshuffle    Egypt's MPs back potential return of information minister post in expected reshuffle    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    







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





Fuel subsidy cost to increase to EGP 64bn following pound's flotation: Petroleum Minister
Published in Daily News Egypt on 06 - 11 - 2016

The cost of the petroleum product subsidies will increase to EGP 64bn in the current fiscal year (FY) of 2016/2017 in the wake of the Egyptian pound flotation and global oil price hikes, Minister of Petroleum Tarek El-Molla said.
The government estimated the value of petroleum products for the current fiscal year's budget at roughly EGP 35bn.
In a phone call to CBC TV show Hona Al-Asema on Saturday, El-Molla said that petroleum product subsidies accounted for EGP 35bn, based on an exchange rate of EGP 9 to the US dollar, as Brent crude oil costs $40.
Following the flotation and high price of Brent oil, the total fuel subsidies will increase to EGP 64bn.
The Central Bank of Egypt (CBE) decided on Thursday to float the pound, thus liberating its price to be determined according to supply and demand, after the difference between the official exchange price and the price in the informal market surpassed 100%.
The government decided to increase gasoline, diesel, butane, and oil prices by 7.1-87.5% starting from Friday.
The new price for octane 80 will be EGP 2.35 compared to EGP 1.6. Octane 92 will be EGP 3.50 instead of EGP 2.6, an increase of 34.6%. Diesel increased to EGP 2.35 from EGP 1.8, an increase of 30.6%.
The natural gas price also increased to EGP 1.6 per cubic metre of gas instead of EGP 1.1, an increase of 45.5%.
Egypt is seeking to obtain a loan from the International Monetary Fund (IMF) worth $12bn, by implementing an economic reform programme that includes the pound's flotation, applying the Value-Added Tax (VAT) Law, reducing fuel subsidies, and offering shares of governmental companies and banks in the Egyptian Exchange.
The government announced in 2014 a plan to cut energy subsidies, which eats up 20% of the general budget. The plan included smartcards for fuel to prevent petroleum product smuggling and the gradual increase in prices so as to eliminate energy subsidies completely in a three- to five-year period.
The government took the first steps for this plan in FY 2014/2015 by raising the prices of gasoline, diesel fuel, natural gas, and electricity. This cut energy subsidy allocations in the budget down to EGP 73.9bn, compared to EGP 104bn in the previous fiscal year.
The government allocated EGP 61.7bn for energy subsidies in the budget for FY 2015/2016, and EGP 35bn for the budget of FY 2016/2017.


Clic here to read the story from its source.