The State subsidy of some basic commodities, such as bread, butane gas and fuel has been a cornerstone of government policies in this country since the July l952 revolution. The mere suggestion of a possible lifting of subsidies, either wholly or partially, was therefore sufficient reason for prices of other goods and some related services to go up. So any thought of changing such a policy evoked potential public anger. However, in the past few years, even before the January 2011 revolution, there has been an inclination to reduce subsidies or rather rationalise them for the sake of redirecting part of the substantial subsidy funds to other channels. The tendency was substantiated by a disoriented chart of deserving citizens. Today, we have the el-Ganzouri government, which, according to its mission statement, is a 'national salvation government' with economy and security at the top of its agenda economy that is taking steps to make drastic changes in the subsidy system particularly regarding energy and fuel. The intermittent emergence of butane gas cylinder and petrol crises during the past few months has caused Egyptians to cry out for radical solutions, which will enable them to suffer less in their daily lives already brimming with other problems related to corruption and mismanagement. The Government is, therefore, considering measures to give consumers limited coupons at the value of the subsidised prices, such that any excess would be sold at international prices. According to the Government, the price difference in the State budget would be rechannelled to education and health, two sectors that urgently need upgrading. The proposal might, however, be benevolent in principle but some experts say that the logic prompting the petrol subsidy was erroneous to begin with. They say that previous governments valued petrol at international prices at a time when it is locally produced. Others believe the new system would enable the Government to spend more on deserving societal sectors. Nevertheless they warn of a likely black market, which would necessitate strict control over outlets. In all cases, the plan is worth trying; perhaps it is time for consumers to learn how to rationalise their use of butane gas cylinders and petrol. Who knows? Maybe the coupon system would dictate moderate patterns of consumption that would have a positive impact on transport.
