Oil Egypt accountACCOUNT King Tut

Egypt Will Slash Fuel Subsidies by 27 Pct

Source: Ahram Online 6/6/2012, Location: Egypt

Share |
Egypt's government will slash fuel subsidies by 27 per cent in the 2012/13 financial year and introduce a new coupon system to rationalise distribution, according to uncirculated details of the new budget acquired by Ahram Online.

The amount spent on fuel subsidies will fall to LE70 billion in 2012/13 from LE95 billion in the current fiscal year, and make up 48 per cent of Egypt's total subsidies bill of LE145.8 billion.

Octane petrol, diesel and butane gas will all be distributed via a system of coupons and smart-cards in an attempt to keep a tighter rein on distribution and limit profiteering. Inflationary pressures normally prompt annual rises in octane and diesel prices, but the Egyptian government has in the past used subsidies to cushion consumers from the impact.

However, the document suggests that the government will fully remove all fuel subsidies for energy-intensive industries by the end of the 2012/13 financial year.

The removal of subidises for fuel oil -- generally used by industry -- is the main driver behind the drop in overall fuel subsidies. Over LE10 billion was earmarked for fuel oil subsidies in the 2011/12 budget. Fuel oil is a low quality fuel used for industrial purposes.

The document also indicates that the government will shift all fuel oil-reliant industries into using natural gas, reducing demand for the former. The allocation for diesel fuel makes up 51 per cent of the total energy subsidies bill of LE35.7 billion. Butane gas is the next biggest recipient, making up 23 per cent of the total.

Egypt's finance minister submitted the government's draft 2012/13 budget to Parliament on Monday.

The presentation of the budget is around two months overdue -- Egyptian law stipulates that parliament must have a draft 90 days before the start of the relevant financial year -- leading to concerns it may not be passed before it is due to take effect on 1 July.

Egypt >>  4/25/2016 - Energean Oil & Gas has completed a new 2D seismic survey over the West Baliana interior rift basin at the North of West Komombo-Block3 concession area...
Egypt >>  4/25/2016 - Egypt's EGPC issued a tender to buy up to 138,000 tonnes of 0.1 percent gasoil in May, according to the tender documents. ...

Egypt >>  4/20/2016 - On the occasion of the State visit by the President of the French Republic, François Hollande, EDF has signed five memoranda of understanding thus con...
Egypt >>  4/19/2016 - Egypt plans to launch a new oil exploration round next week, offering 11 blocks in the Western desert and the Gulf of Suez, Petroleum Minister Tarek a...

Egypt >>  4/19/2016 - Eng. Hisham Mekkawy, BP regional president of North Africa reviewed the company’s experience in Egypt, pointing out that BP is proud of its long histo...
Egypt >>  4/18/2016 - Rockhopper Exploration plc, the oil and gas exploration and production company with interests in the North Falkland Basin and the Greater Mediterranea...

Related Categories: Agents, Anti-foaming  Aromatic Solvents  Butene  Cleaning  Corrosion Inhibiting  Crude Oil  Detergents  Diesel Fuel  Enhanced Oil Recovery  Ethylene  Fluids Drilling, Completion, Workover & Stimulation  Fluids/Chemicals  Fuel oil  Gasoline (Lead free)  General  Jet fuel  Kerosene. Domestic use  Lubricants, Oils & Greases  Oil Production & Treating  Polyethylene  Polyvinyl chloride  Propane  Summer Diesel 

Related Articles: Butene  Crude Oil  Diesel Fuel  Ethylene  Fuel oil  Gasoline (Lead free)  General  Jet fuel  Lubricants, Oils & Greases  Oil Production & Treating  Polyethylene  Polyvinyl chloride  Propane 

More News

Oil & Gas Companies in Egypt >>

Related Links

Oil Egypt E-Marketplace - Subscription Packages - Benefits

Copyright © Universal Solutions S.A.E. All rights reserved. Privacy Policy. - Career Opportunities - Feedback - Contact Us