An official with the petroleum sector stated to Egypt Oil&Gas that Egypt imports bill for petroleum derivatives including benzene, diesel and mazut, as well as liquefied natural gas (LNG), has reached EGP 13b a month. He added that government’s petroleum unpaid crisis will decrease from EGP 6b per month to EGP 3.5b per month after the current increase in pump prices.
Moreover, a source with the Egyptian General Petroleum Corporation (EGPC) commented to Egypt Oil&Gas that the rise of fuel prices will decrease Egypt’s petroleum activities from 60% to 40%, given that the government is continuing with subsidies for benzene and diesel. EGPC is working on addressing the gap between supply and demand, by securing products from local refineries as well as foreign partners without causing any financial problems.
Egypt Oil&Gas further quoted an official from the sector saying that the fuel regulating smart cards will save EGP 36b annually which is the same amounts used in subsidies. He added that the smart cards will solve fuel problems in Egypt and help eliminate the black market.