Egypt spent approximately EGP 120 billion on oil and gas subsidies during fiscal year (FY) 2016/2017 as a result of the flotation of its currency, Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, told Reuters.
Subsidy costs jumped by 135.3%, an increase of EGP 69 billion from the EGP 51 billion spent in FY 2015/2016.
Egypt allocated around EGP 110 billion for petroleum subsidies in FY 2017/2018.
The government increased oil and gas prices twice in less than eight months.
In June of 2017, the cabinet chose to cut fuel subsidies to ease the budget deficit. This decision led to higher gasoline and diesel prices.
Egyptian Prime Minister Sherif Ismail said that economic reforms by the state could no longer be delayed, according to Al Ahram.