News

Egypt To Completely End Fuel Subsidies by 2019

mm
Egypt To Completely End Fuel Subsidies by 2019

Credit: Khalil Hamra/ AP

As part of the economic reform plan, the state subsidies for petroleum products will be completely suspended by 2019, the minister of Petroleum and Mineral Resources, Tariq al-Mulla announced on Wednesday.

In the same press conference, he also announced that the application of fuel smartcard will also be suspended.

He further explained that the total subsidies on petroleum and natural gas have amounted to 517 billion EGP during the last 5 years, which could be hence used to help those who are truly in dire need of this money. However, it is not clear how the government is planning on providing this assistance.

This announcement comes after a hike in fuel and cooking gas prices which occurred last Saturday, also as a part of the austerity measures that the government has undertaken as part of the 12-billion-dollar International Monetary Fund (IMF) loan.

Saturday fuel and gas price surge was more than a 60% increase. The authorities have also increased drinking water prices by 45 percent, and the electricity prices by 26 percent in the last few weeks.

As a direct consequence of the Saturday price hike, public transportation fares have also increased. Al-Ahram reported that public transportation prices were expected to increase by 10 to 20 percent.

The series of consecutive price hikes came after another increase in the metro tickets’ prices around mid-May, sparking widespread popular outrage and protests, where clashes between civilians and the police took place in certain metro stations. Most protests happened in Helwan station, and approximately 21 people were arrested, according to an anonymous source who spoke to ABC News.

Last year, Egypt raised fuel prices by around 55%, also as part of the economic austerity conditioned by the IMF, making the most recent hike in price the fourth one since July 2014, a month after Abdel Fattah El-Sisi took office.

According Al-Shorouk, an anonymous Ministry of Petroleum source said that the recent surge of international oil prices highly inflated the nation’s fuel subsidy bill, which had a severe impact on the Egyptian 2017/18 state budget.

From Zalabia to Buñuelos: Food That Travels
Refugee Displacement Reaches an All-Time High with Two People Displaced Per Second

Subscribe to our newsletter


News

More in News

Egypt’s Olympics Handball Team Defeats Portugal 37-31

Nadine Khaled24 July 2021

“We Will Rebuild”: Egyptian Community Hopeful After Fire Destroys Orthodox Church

Marina Makary24 July 2021

TIME Magazine Names Cairo as One of ‘World’s Greatest Places of 2021’

Egyptian Streets24 July 2021

Nour El Sherbini and Ali Farag Win 2020-2021 PSA World’s Championship

Nadine Khaled23 July 2021

Egypt to Allow Orphans to Include Foster Parents’ Names in Birth Certificates

Egyptian Streets22 July 2021

Defensive Egypt Hold Spain to 0-0 Draw in Olympics Opener

Egyptian Streets22 July 2021

Cairo Imposes EGP 10,000 Fine for Eid Street Slaughter

Marina Makary19 July 2021

Mahienour El Massry Among Six Activists Released from Prison

Nadine Khaled18 July 2021