The Ministry of Petroleum and Mineral Resources along with the Ministry of Finance are adjusting the hedging mechanism for fiscal year (FY) 2019/2020 amid oil price fluctuations, Al Borsa reported.

Oil prices fell below the $70 per barrel level during FY 2018/2019, the set price in the Egyptian government hedging agreement with JPMorgan Chase and Citibank, which will end on June 30.

As oil prices have dropped to an average $65 per barrel, renewing the deal with the same price levels would cost the state budget a difference of around $5 a barrel.

The ministry will change the hedging mechanism accordingly so that the volatile prices would not cause additional financial burdens to the general budget while maintaining the hedging mechanism against petroleum products price fluctuations.