More Fuel Subsidy Cuts Coming in mid-2019: Fitch Solutions

More Fuel Subsidy Cuts Coming in mid-2019: Fitch Solutions

Egypt will make further cuts to fuel and energy subsidies in mid-2019, a Fitch Solutions report predicted, according to Al Mal.

This would be the fourth round of cuts since the government signed the loan agreement with the International Monetary Fund (IMF) in November 2016.

The credit rating agency also forecasts further government action to control public sector salary growth, noting that President Abdel Fattah El Sisi recently announced that there will be no public sector wage increases at the end of the 2018/19 fiscal year.

The Egyptian government will also begin linking local fuel prices to international market prices at the end of 2018. The automatic fuel price mechanism approved in June will adjust prices according to global market changes, the value of the Egyptian pound, and the quantity of fuel imports.

 

Sarah Samir 3420 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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