China's c. bank issues 495.8b yuan off reverse repo    European shares climb as EU-US trade deal lifts markets    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egypt, South Africa pledge to deepen development cooperation at G20 meeting    Egypt's PM orders road maintenance review, tougher penalties to curb accidents    Egypt, Novartis explore expanding collaboration in oncology, cardiology    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    EU, China agree on rare earths, climate but divisions remain on trade, Ukraine    Association of Real Estate Developers seeks urgent meeting over threatened land deallocation on Northwest Coast    Midar partners with Adeer to develop Boulevard project in Mostakbal City with EGP 70bn investment    Iran launches mass deportation of Afghans amid spying allegations    Over 60 million visits recorded under Egypt's Women's Health Initiative since 2019    Culture minister launches national plan to revive film industry, modernise cinematic assets    Thailand, Cambodia clash on new front as tens of thousands flee    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    UK pay settlements stagnant amid inflation surge    I won't trade my identity to please market: Douzi    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    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    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    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.



Egypt to implement automatic fuel price indexation mechanism by end of 2018: IMF
Published in Daily News Egypt on 12 - 07 - 2018

The International Monetary Fund (IMF) said in its staff report after the third review of the Egyptian economy that the automatic fuel price indexation mechanism for most fuel products will be implemented by the end of December 2018.
The IMF noted on Thursday that the mechanism will adjust fuel prices to changes in global oil prices, the exchange rate, and the share of imported fuel in domestic consumption, adding that it is designed to maintain the cost-recovery ratios for fuel products.
The mechanism will safeguard the budget from unexpected changes in the exchange rate and global oil prices. In addition, electricity subsidies are projected to decline from 0.7% of GDP in 2017/18 to 0.3% in 2018/19, and to be fully eliminated by 2020/21, mentioned the report.
The fuel subsidy bill is expected to decline to 1.8% of GDP in 2018/19, despite the significant increase in world oil prices over the past year, added the report.
The report noted that the fuel subsidy bill has decreased from 3.3% of GDP in 2016/17 to a projected 2.7% of GDP in 2017/18, adding, “Despite significant increases since the start of the programme, prices for fuel products in Egypt remain among the lowest in the world, which benefits the well-off disproportionately rather than the poor.”
In June 2018, the authorities increased fuel prices by another 44% on average, which raised the pre-tax price-to-cost ratios to about 73% for gasoline, diesel, kerosene, and fuel oil, said the report, noting that increases are planned to achieve the objective of full cost recovery by the end of fiscal year 2018/19.
On 29 June, the IMF completed the third review of Egypt's economic reform programme supported by an arrangement under the Extended Fund Facility (EFF).
The completion of the review allowed the authorities to draw the equivalent of SDR 1,432.76m ($2.02 bn), bringing total purchases to SDR 5,731.05m ($8.06 bn).


Clic here to read the story from its source.