An official at the Egyptian General Petroleum Corporation (EGPC) told Egypt Oil&Gas that the rise in oil prices that would exceed $50 a barrel may pose a threat to energy subsidies as currently itemized in the new fiscal year budget of the country. According to the calculations, energy subsidies are projected at EGP 35b.
Similarly detrimental to the subsidies may be the decreasing value of the Egyptian pound to the US dollar, noted the official.
“Avoiding energy subsidy crisis depends on the rise of production level by developing unconventional oil and gas fields, as well as on the reduction of import rates by increasing local refineries,” the official informed Egypt Oil&Gas.
He added that “the development of refineries is the biggest challenge that will make us reduce the import of petroleum products to stand at 40% instead of 60%.”