Debts owed by the Egyptian energy sector have reached around EGP 800 billion, the Egyptian Minister of Finance, Amr El Garhy, has said, according to Amwal Al Ghad.

El Garhy pointed out that new hydrocarbon discoveries and increased natural gas production will contribute to promoting the energy sector.

The government is currently paying 50% of the cost of petroleum provided to citizens, El Garhy stated, adding that within the upcoming two years subsidies on benzene, diesel and petroleum products will be lifted completely.

The Egyptian government plans to reduce subsidies of petroleum products by 26% and electricity subsidies by 47% in the annual budget for the 2018/19 fiscal year, Amwal Al Ghad reported.

The government aims to cut its expenditure on subsidies by more than quarter, reducing the budget from EGP 120.926 billion to EGP 89.075 billion.