Sisi thanks Egyptians for their 'dazzling' participation in constitutional referendum    Egypt's Sisi calls for enabling Libya's national army and institutions to eradicate terrorism    Moroccan oven roasted chicken    'Egypt fully supports right of Sudanese people to determine their future,' Sisi tells gathering under AU umbrella    Sri Lanka detains 40 people in investigation of blasts; toll rises to 321    Liverpool's Milner backs United to win Manchester derby    Man City's Sterling wants harsher punishment to tackle racism    Chelsea's Hudson-Odoi confirms season over due to Achilles injury    Powerful quake hits Philippines, day after deadly temblor    Egypt hosts 10th annual conference of Arab Federation of Exchanges    Elders, campaigners dominate scene in Kerdasa polling stations    What do experts think about celebrations in front of polling stations?    Egyptians cast votes on last day in referendum    250 archaeological missions from 25 countries work in Egypt: Minister    CIB-Egypt establishes representative office in Ethiopia    ACUD, Petroleum Ministry ink deal to provide government district with natural gas    Bundesliga: Bayern Munich turn the screw in a reminder of champions past    Egypt, Somalia seek bilateral cooperation    The main differences between Catholics and Protestants    Spring Affair Returns for Second Season of Shopping, Charity    Tod's bring back Alber Elbaz to Fashion Scene    President instructs enhancement of MSMEDA activities    Karlovy Vary to honour cinematographer Vladmir Smutny    Youssef Chahine remembered at Karlovy Vary    Cannes festival reveals short film collection    Voting in 3rd day of referendum on constitutional amendments going on normally, says NEA    Volume of trade exchange between Egypt, China jumped to USD 13.8 bn in 2018    Iraq says any action to raise oil output won't be unilateral: Ministry spokesman    Trade exchange between Egypt, Tunisia to increase to $500m    Airstrikes hit Tripoli, Mitiga airport reopened    Al-Sisi receives Abbas, voices support for Palestinian legitimate rights    Cairo Copts celebrate Palm Sunday    Chess world champion Magnus Carlsen wants to keep winning streak going    New attack on Ebola center in Congo; 1 militia member killed    Sleep myths may hinder good sleep and health    Towards the referendum    Sudanese demand ‘legitimate change'    Caught in the middle?    Expected exit    Escaping expenses    Spectacular scene, favourable draw    Flight prices go sky high    Reining in inflation    The final draft    Bundeli Kala Parishad troupe's Indian folk dance show at Al-Gumhouriya Theatre is a must go    Paris' Notre Dame    Screen blues    Vatican willing to offer technical know-how to help restore Notre-Dame    

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

Fuel subsidies hurt industry, Egyptians alike: head of Petroleum, Mining Industries Chamber at FEI
Published in Daily News Egypt on 20 - 01 - 2019

For the Federation of Egyptian Industries (FEI), considering fuel subsidies was a significant step toward genuine economic reform which began with the floatation of the Egyptian pound, putting Egypt on the threshold of the required economic growth.
The head of Petroleum and Mining Industries Chamber at the FEI, Tamer Abo Bakr, informed Daily News Egypt that fuel subsidy allocations are not in favour of the citizen and the industrial sector alike, thereby it did not enhance the Egyptian economic performance as well.
"Fuel subsidies have been allocated since the 70s, reaching its hike by EGP 150bn during 2016, and we called the government time after time to phase out these subsidies and redirect them to improve other weak, suffering sectors but with no response. President Sisi has taken this daring step which definitely will help the economy to grow, and the market to flourish", Abo Bakr said.
He estimated that the liberalisation of 95 octane gasoline in March is to pave the way for dissolution of 92 octane gasoline, as countries all over the world have stopped using 80 octane and 92 octane gasoline and even 95 octane gasoline since several years, and currently use 98 octane gasoline instead.
"Although it is important to phase out fuel subsidies gradually, and the government was successful it its mission in this regard until now, it requires some important procedures to provide this step with the ultimate standard of success. First, this sector has to be controlled through an independent authority, and not to follow any executive body including the ministry of petroleum and mineral resources, as it will enhance the sector and boost the economy. Second, the time factor is the perfect time to set fuel prices, in order to follow the Brent crude oil global prices which are cheaper now, allowing fuel prices in our market to increase or decrease according to Brent prices. And eventually, we have to stop comparing fuel prices in Egypt with their counterparts in other countries because of the big differences between us and them in various levels. These steps must be taken to achieve a real reform in this sector, and not simply as mandatory charges", he revealed.
The state, as Abo Bakr continued, has to set a qualified database to protect the low-middle income category, to help it to gradually adapt to the phasing out of the fuel subsidies until its complete eradication, as it will undoubtedly serve the national economy to develop.
What complicates the situation even further is the implementation of the floatation of the Egyptian pound and the concurrent phasing out of fuel subsidies without giving the floatation of the Egyptian pound the chance to be assimilated by the domestic market and citizens alike. If that were to occur, the economic atmosphere, especially the industrial and tourism sectors, would have thrived in a greater manner, benefiting from the rising price of dollar. Phasing out fuel subsidies should have been applied after a reasonable period following the floatation, in order to avoid everything we are presently experiencing, according to Abo Bakr.

Clic here to read the story from its source.