Sources at EGPC revealed that the rise in the dollar value will increase the crude oil and petroleum derivatives import bill to reach $ 1.3b a month in comparison to the previous range of $1.1b-1.2b, reported Al-Mal.
The sources expected a severe crisis in the supply of petroleum products – LPG and gasoline – during the next few months, if dollar prices continue to rise, making the greenback scarce delaying the entry of shipments.
They added that this also poses difficulties towards reimbursing foreign companies, while increasing the quantities required of the local currency, which is then converted to dollars to settle those dues.
Hisham Ramez, Governor of the Central Bank, had said in a statement made two days ago that the petroleum sector paying its debts would affect the dollar.
The sources pointed out that the petroleum sector has had to resort to the Central Bank and Ministry of Finance to pay its dues, which further reduces the supply of the dollar.
As for the impact of the value of the dollar on exports of heavy crude, along with some oil derivatives, naphtha and other oils, the sources confirmed that the increase will have no significant effect. This is due to the lower volumes already being exported, with the natural decline in productivity, and rising domestic consumption.
The sources confirmed that the contract with Saudi Aramco, to provide for a large part of the needs of the domestic market, could alleviate the anticipated crises faced by the local market, till the expiration of the contract at the end of November. That being said, the derivatives crises could be renewed if the dollar crisis continues.