El Molla Requests Budget Increase for Fuel Subsidies

El Molla Requests Budget Increase for Fuel Subsidies

Egyptian President Abdel Fattah El Sisi has revealed that petroleum minister Tarek El Molla requested increasing fuel subsidy allocations to $125 billion, Al Mal reported.

In a speech for the Armed Forces’ culture day on October 11, El Sisi urged citizens to understand and be patient as the country might find some difficulties in securing the allocations.

“The oil price per barrel rose to range between $80 and $85 after we used to buy it at about $40 seven or eight months ago,” El Sisi said in the speech, according to Xinhuanet.

Official sources told Enterprise last week that Egypt’s fuel subsidies bill is expected to reach EGP 100 billion in fiscal year (FY) 2018/19 due to the recent surge in oil prices.

The government raised oil prices by 50% in June, cutting its annual expenditure on fuel subsidies from EGP 139 billion to EGP 89 billion. This was the third price hike since late 2016.

The move to reduce fuel subsidy allocations is a key part of the government’s ongoing economic reform program that was spurred by the 2016 agreement with the IMF to borrow $12 billion over three years.

“As long as we’re handcuffed by subsidies in everything in Egypt, the country will not be able to achieve its desired goals,” El Sisi said during the speech on Thurday.

 

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Sarah Samir 3530 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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