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Fuel shortage threatens bread supplies
Published in The Egyptian Gazette on 20 - 04 - 2012

Cairo - It has been three months since a fuel shortage hit Egypt and people's patience is wearing thin, amid fears that the crisis could disrupt the production of subsidised bread.
"I'm really suffering, going from petrol station to petrol station every day, trying to find fuel for my bakery,” says Wael Helal. “I cannot go on like this for long. If things get worse, I'll have to close down,” he adds sadly.
Most of Egypt's subsidised bakeries need diesel to operate and some will have to close if the crisis continues.
Outside Helal's bakery, men, women and children stand in two long queues, waiting their turn.
"I buy 20 loaves of this bread for one Egyptian pound; at one of the unsubsidised bakeries, I'd have to pay four Egyptian pounds,” says Mahmoud Mohamed, queueing outside the bakery.
“The subsidised bakeries are vital for millions of people like me, although I have to suffer every day to get my share of subsidised bread.”
Observers say there is a 35 per cent shortfall in fuel. The Government blames hoarding for the crisis.
Thousands of cars queue outside petrol stations from early morning, blocking many of the big roads leading to the major cities.
"I have to queue for several hours at the petrol station to fill up, while the lorries use huge amounts of fuel," says Ahmed Ali, a bus driver.
“The fuel crisis is making my work a misery and I don't think there's a solution in sight. What is the Government doing about our problems? Where are the MPs we voted for?
“Gas cylinders are another problem. People, especially the poor and the marginalised, are suffering a lot, just to get one gas cylinder,” he adds.
"When the revolution erupted on January 25, 2011, we all dreamt of a rosy life, but the dreams have faded and our problems are getting worse,” another taxi driver laments.
"We are doing our best to resolve the fuel problem, but what is happening is abnormal,” Oil Minister Abdallah Ghorab recently said. “Some people take the subsidised fuel and sell it on the black market.”
The Petroleum Ministry has increased the daily supply of diesel from 36,000 tonnes to 38,000 tonnes, petrol from 16,000 to 18,000 tonnes and gas cylinders from 1 million to 1.3 million.
Despite this, there are numerous reports of fighting over fuel, reflecting citizens' exasperation and the need for further Government intervention.
Ambulance services are also at risk. "The drivers go to petrol stations from early morning,” Naim Rizq, the operations manager at Cairo's main ambulance station, told IRIN. “Sometimes they spend the whole day waiting, but, when their turn comes, they are told the fuel has run out.”
When a policeman recently called Rizq to ask for help after he was shot and injured by some armed thugs on the outskirts of Cairo, he could not find an ambulance with enough fuel to take him to hospital. The policeman's colleagues had to call the Interior Ministry to borrow some.
Mohamed Abdullah, a 30-year-old ambulance driver, says his job has become even more stressful.
“There are always long queues at petrol stations. This prevents me from reaching the patients in time. The patients' relatives always yell at me.”
Some economic experts believe the current crisis may force the Government to rethink its fuel subsidies policy. Egypt had spent the equivalent of $83.3 billion subsidising fuel over the past five years, according to the Petroleum Ministry.
"Around 60 per cent of these subsidies go to people who do not deserve them,” says one economist, speaking on condition of anonymity. “This makes it necessary for the Government to rethink these subsidies.”
The Government is currently reconsidering its support for major industrial institutions, which account for almost 70 per cent of fuel subventions, he adds.
"If the Government reduced petroleum subsidies by 10 per cent, this money could be channelled into building new houses, hospitals or schools,” the economist stresses.
Another governmental plan envisages the issuing of vouchers to poorer citizens to enable them to buy cooking gas for the equivalent of LE5 (less than $1), while everyone else would pay LE30 ($5).
This plan, if implemented properly and impartially, could help solve the problem of gas.


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