The Head of the General Division of Petroleum Materials, Hossam Arafat, stated exclusively to Egypt Oil&Gas that Egypt will lift fuel subsidies over 5 years to reach zero allocations in the Egyptian budget. The allocations will be used for other fields, such as education and health.
Arafat pointed out that the political leadership, not the Ministry of Petroleum, is the main factor controlling fuel prices increase, as the role of the Ministry of Petroleum consists of securing the product.
Egypt has been delaying diesel and benzene prices increase due to the fear of Egyptians’ turmoil, especially as it will come with the increase of prices of other goods.
Arafat said that the government does not have any other option except increasing fuel prices as global oil prices are starting to get back to normal with crude oil reaching around $47.9 per barrel. He explained that the increase in global prices has a negative effect on the allocations of fuel subsidies in the budget.