In a statement to Egypt Oil&Gas, a source from the Egyptian oil and gas sector stated that the Egyptian General Petroleum Corporation (EGPC) is considering to launch a tender to import 700,000 tons of benzene, diesel, and mazut oil. He added that the Ministry of Finance will secure $300m to buy the needed cargos by mid-November. Accordingly, the cargos will be distributed to filling stations across Egypt based on the ministry’s schedule to meet stations’ demands.
This comes as an official with EGPC stated to Egypt Oil&Gas that filling stations are facing a shortage in benzene 80 octane due to delay in distribution and not because of shortages in supplies, adding that the government has enough strategic reserves of fuel to cover market demand until the news shipments arrive.
Furthermore, EGPC stated that fuel consumption rates have stabilized following the government’s decision to increase pump prices after lifting fuel subsidies. The ministry believes that the price increase will help in rationalizing consumption. A sentiment echoed by the Minister of Petroleum, Tarek El Molla. While participating in the Global Ministerial Dialogue panel for empowering emerging markets during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), El Molla stated that Egypt’s long standing subsidies have hinder progress in various areas such as social programs and renewable energy. He added: “now we are expanding the social programs like social safety networks and direct cash and furthermore this is a good step towards reducing consumption, or better yet improving efficiency.” Ell Molla explained that the government will promote awareness campaigns to educate citizens on the efficient use of fuel and reduce wastefulness, while increased pump prices will motivate Egyptians to change their behavior towards fuel consumption.