Fuel subsidy costs rise in Egypt in 9 months

Fuel subsidy costs rise in Egypt in 9 months

Egyptian Oil Minister Tariq Al-Mulla said Tuesday that the cost of subsidizing fuel in his country amounted to 84 billion pounds ($ 4.73 billion) in the first nine months of the current fiscal year 2017-2018, which ends on June 30. The cost of supporting petroleum products rose by 7.7 percent, compared with 78 billion pounds in the same period last fiscal year. Egypt has raised the price of oil products twice in a period of time not exceeding one year, the last in June. Estimated oil subsidies in the 2017-2018 budget are about 110 billion pounds, while in the next fiscal year Egypt will target some 89 billion pounds. The government submitted the draft state budget to the House of Representatives in March, to be approved before the end of June. Egypt is pursuing reforms such as the launch of a smart card system to monitor consumption at gas stations and the distribution of cooking gas cylinders through ration cards, in which families receive goods at subsidized prices. But these measures have not yet been implemented. On the other hand, Mulla said that his country is seeking to launch two international bidders for oil and gas exploration in the Mediterranean and Red Bahrain in 2018. “We will be offering a global bid for oil and gas in the Red Sea before the end of 2018. We will be offering within weeks a global bid for oil and gas exploration in the Mediterranean in 10 or 11 regions,” he added. The Egyptian Natural Gas Holding Company (EGAS) said in January it was seeking a global bid for oil and gas exploration in the eastern Mediterranean and the Nile Delta during the second half of fiscal year 2017-2018, but has not yet announced it. The discovery of Eni in the giant field of “noon” in 2015, which contains reserves estimated at 30 trillion cubic feet of gas, the appetite for new bids in the framework of Egypt’s quest for self-sufficiency of gas during the year. Over the past few years, Egypt has demarcated its maritime borders with some countries to facilitate the exploration and exploration of oil and gas within its borders without conflict.
This article has been published at alhayat.com. Unauthorized return is not allowed.

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