Egypt Spends EGP 36B Annually to Subsidize Butane Cylinders

Egypt Spends EGP 36B Annually to Subsidize Butane Cylinders

In a press conference held by Prime Minister Mostafa Madbouly, Minister of Petroleum and Mineral Resources Tarek El Molla¬†discussed the state’s efforts to ensure the permanent availability of petroleum products in the local market, highlighting the government spends up to EGP 36 billion annually to subsidize butane cylinders.

El Molla indicated that current consumption has reached about 800,000 butane cylinders per day, compared to the situation in the past, in which consumption exceeded one million cylinders. thanks to the expansion of the delivery of natural gas to homes, as well as the delivery of gas to villages within the initiative. Presidential Hayah Karima (‘Decent Life’) for the development of Egyptian villages.

The minister added that currently, Egypt imports 50% of its daily consumption of butane and that cylinders are sold at the official price of EGP 75 in the local market, pointing out that it costs the state more than EGP 190. He explained that with the recent developments in the exchange rate, its cost exceeds EGP 220.

Additionally, El Molla indicated that the main role of the petroleum sector in this regard is focused on securing the needs of the market, the state and the industry for all their needs of petroleum materials, whether it is gas, benzene, diesel, or mazut.

El Molla stated that these products are related to the movement of trade and transport, and therefore the first target at the present time is to secure production and provide it locally as well as increase the local manufacture of petroleum products, such as gasoline and diesel.

 

Sarah Samir 2904 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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