Get to know the right way to use and clean your mask during the coronavirus pandemic    UN warns coronavirus could push half a billion more people into poverty worldwide    EU ministers sign half a trillion euro coronavirus rescue plan deal    Egypt to import 800,000 tonnes of wheat during harvest: Finance minister    Egypt says security officers at Magdi Yacoub Heart Foundation test negative for coronavirus    CAF likely to postpone Champions League, Confed Cup semis    UK's Johnson out of intensive care as condition improves    Oil prices soar as OPEC+ prepares to cut supplies    Week 2 of Arab Fund for Arts and Culture 'Screens and Streams' brings new films, music online    Farwell to 25-year old Chynna Rogers    Ferdinand recalls rejecting Barca move to remain at Man United    African leaders rally around WHO head after Trump criticism    Iraq names its third prime minister in 10 weeks    Egypt's Delta Life Assurance eyes paid-in capital increase in Q1-FY21    Southampton players, coaches agree to defer salaries    Australian police take 'black box' off cruise ship in coronavirus homicide probe    Analysis: Sudan still in crisis a year after Bashir's ouster    Egypt's market regulator Oks Talaat Moustafa's first sukuk    US senators question Amazon CEO about firing of warehouse protest leader    Alphabet's Google bans Zoom software from employees' laptops    Ramadan Sobhi says resuming European career a priority after loan extension    Economic reform programme allowed Egypt to bear repercussions of COVID-19    Egypt's parliament postpones plenary meetings until 29 April    European nations struggle to agree on terms of economic aid    Eastern Libya confirms first coronavirus case    The Minister of Culture launches the electronic initiative "Stay at Home: Culture in Your Hands" on the Internet    MPs' work continues    The golden age of Egyptian cinema    EFA to raise funds for players in lower divisions amid coronavirus    Egyptian Fine Arts Syndicate organises exhibition to help artists amid coronavirus    Egypt's swimmer Osman quarantined in Red Sea resort after returning from US    Comedy puppet Abla Fahita returns to screens during Egypt's curfew    Egypt's Supreme Council of Culture launches three new competitions    Egypt, MENA growth forecast at 2.7%, -0.3% respectively: IIF    Prosecution warns of EGP 300k fine or 2-year jail for spreading fake coronavirus news    Al-Sisi discusses joint coronavirus efforts with Abu Dhabi Crown Prince    Saudi Arabia intercepts missiles over Riyadh    CBE temporarily regulates cash deposits, withdrawals    Lagging COVID-19 response to shield frail economy: Rouhani    Weekend's virtual concerts, plays, and festivals people can stream at home    Brazilian football stadiums transformed into hospitals to treat coronavirus patients    Amid coronavirus outbreak, Egyptian Premier League cancellation seems inevitable    Stay At Home: Ministry of Culture to publish free books online for public browsing    Ethiopia has not sent Egypt latest designs for GERD: Minister of Irrigation    Nigerien President hails Egypt's diplomatic attempts to reach agreement over GERD    Al-Sisi appreciates Kenya's support to Egypt's stance on GERD    Cairo court acquits Mubarak's sons of stock market manipulation    Egypt's President Sisi pardons some prisoners on 25 Jan. Revolution anniversary    







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.