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Egyptian Cabinet Vetos the Upcoming Increase of Fuel Prices

October 21, 2018
Photo credit: Egyptian Gas Association

After fake news circulated on social media regarding an increase of 25 percent in fuel prices in 2019, the Egyptian cabinet released a statement denying the false news. Following the global increase in oil prices, Egypt spent EGP 125 billion on fuel subsidies. Since February of this year, the global price per barrel doubled from USD 40 to USD 85. However, Mohamed Moet, Egypt’s Minister of Finance believed that the fluctuating price of oil will not affect the country’s budget because of the cap placed on subsidies. According to the Ministry of Electricity and Renewable Energy, if the prices of natural gas witness an increase, electricity subsidies would reach EGP 70 billion. Starting 2019, the country will reduce its diesel fuel imports by half as it launches the 4.270 billion dollar Mostorod Refinery Complex in December. The complex is one of the region’s largest refining vicinities. The anticipated yearly production capacity is 80,000 tons of butane, 600,000 tones of jet fuel, 450,000 tones of coal and 96,000 tones of sulfur. A source from the Egyptian General Petroleum Corporation revealed to MENA News Agency that the refinery complex is expected to manufacture…


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