Egypt increased the diesel pumped to local markets from 38,000 tons to 40,000 tons. An official with the Egyptian General Petroleum Corporation’s (EGPC) operations stated that Egypt’s local consumption increased especially for agricultural and transport sectors. This lead to the higher pumping rates of diesel, reported Al Mal News.
EGPC’s official added that Saudi Aramco’s decision to halt diesel and fuel supply for the third consecutive month did not create any supply shortages in the domestic market. Additionally, the decision will not cause any future bottlenecks, as Egypt owns safe reserves of diesel which are enough to cover the domestic needs.
It is noted that Saudi Aramco was supplying Egypt with 700,000 tons of petroleum products per month, prior to stopping supplies in October 2016, without stating any reasons.
In related news, the Egyptian Ministry of Petroleum had announced that the government plans to increase local production of diesel to 2.6m tons per day starting 2017 in order to avoid any crisis in filling stations. Egypt also plans to support petrochemicals and decrease butane subsidies.