Egypt’s Cabinet Aiming to Cut 25% of Imported Fuel Cost

Egypt’s Cabinet Aiming to Cut 25% of Imported Fuel Cost

An official source at the Egyptian General Petroleum Corporation (EGPC) stated  to Egypt Oil&Gas that the Egyptian government is willing to reduce the energy consumption to avoid increasing energy subsidies allocations to EGP100b in 2017 / 2018 budget.

The source also add that Egypt’s Cabinet has asked the Ministry of Petroleum and Mineral Resources to work during the next three years on deducting fuel imports by 25%  to save USD wasted reserves.

He pointed out that the Ministry seeks to increase Egypt’s daily production of oil and natural gas, along  with the start of extracting products from Zohr by  the end of 2017, which will help to transform Egypt into a regional energy hub in the Middle East.

Moreover, he explained that the petrochemical projects, which are currently under implementation, will help to increase the domestic production of petroleum by 10% to 25% . This will enable Egypt to cover the  petroleum local market’s demands.

The Source added that Before May 2017, Egypt’s strategic reserves of diesel, benzene and butane will be enough to cover the needs of 25 days, as daily consumption and internal traveling were reduced during winter.

Dr. Mahinaz El-Baz 318 Posts

Mahinaz El Baz received her PhD degree in International Economics from Helwan University in 2022. She has +10 years of experience in journalism and economic analysis. She received the "Best Economic Article Award" in 2016 from CFA Society Egypt.

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