A source at the Petroleum Ministry told Egypt Oil & Gas that the Egyptian government only aims to reduce energy subsidies by 5% during the current budget of this fiscal year. The percentage is set at a lower than expected rate due the drop in world oil prices. This move is expected to save EGP 4b as part of the 5-year subsidy reform plan, with a sum reaching EGP 60b.
He pointed out that an agreement was reached with the Ministry of Finance to allocate about EGP 1.2b of the energy subsidies bill for the current budget to support the delivery of natural gas to homes in poorer areas.