MoF: No Increase in Fuel Prices until Next July
There will be no further increase in fuel prices during the fiscal year (FY) 2017/18, the Egyptian Minister of Finance stated during a call to ON TV, he further added that the government will continue to reduce energy support gradually over the next five years, Amwal Alghad reported.
The government should cut subsidies by five times between 2014 and 2019 based on the Energy Conservation Program.
The Minister further explained that the recent increase in the fuel prices was essential in order to reduce the deficit in the public budget and pay the debts of the Ministries of Petroleum and Electricity.
The rate of support for petroleum products following the recent measures will represent about 7% to 8% of the total public expenditure compared with 20% prior to their application.
Additionally, tax revenues are planned to rise to more than EGP 600b during the new FY, after rising to EGP 450b within the FY 2016/17 compared to EGP350b in the previous year.
In June 2017, the Cabinet approved an increase in the prices of some petroleum products, notably petrol from EGP 3.5 to EGP 5 per liter. The diesel also increased from EGP 2.35 to 3.65 per liter, and the gas increased from EGP 15 to 30 per cylinder.
The government has changed fuel prices around three times in the past three years, in July 2014, November 2016, and earlier this year.