Egypt’s Minister of Petroleum and Mineral Resources, Tarek El Molla, said that the fuel subsidy increased well above EGP 110b, from an estimated EGP 35b in the budget, because of the flotation of Egyptian bound and the high price of Brent oil hiking to $49.43 during the first week of May 2017, although it was at $40 per barrel in the country’s budget, reported Daily News Egypt .
The Minister added that the government continues to restructure the petroleum subsidy scheme to deliver support to its beneficiaries, next to increasing spending on education, health, and services provided to citizens. “We cannot continue subsidizing fuel this way. This is costing the country much money and does not reach its intended beneficiaries”, El Molla said.
In addition, El Molla said that 50% of the subsidy bill is spent on providing diesel fuel to the local market, because it is the most consumed in various sectors. Additionally, the government spends about 20% of the support for the provision of LPG and 20% for gasoline, plus 10% for the subsidies for fuel oil and other petroleum derivatives.