The Egyptian government will reduce energy subsidies to less than $8b this fiscal year, reported the Cairo Post.
Egypt is working to balance its public spending as the country faces falling reserves and fewer loans and aid from Arab Gulf countries.
Last month Egypt President Abdel Fattah El Sisi dismissed the entire cabinet over perceived corruption issues. The choice of Sherif Ismail—former petroleum minister—to become the new prime minister is indicative of how important the energy sector is to the current government.
One of the biggest issues for the new cabinet is expected to be energy subsidies, and on Saturday the prime minister began to address the problem through his announcement about subsidy reforms.
“Energy subsidies are to be cut by 70% within five years and it will be delivered to those to deserve it,” Sherif Ismail stated.
Last summer the government began cutting subsidies, causing prices of some fuel to skyrocket nearly 70%.
An electronic tracking and monitoring system to regulate subsidies is currently being developed and is expected to be introduced later this year.