USD 1.6 Billion in Fuel Savings Projected Amidst Recent Price Hike
Diesel subsidies account for 70% of annual support, with ongoing efforts to close the cost gap in petroleum in Egypt.
The Egyptian government projects EGP 80 billion in fuel savings by the end of the 2024/2025 fiscal year, following a fuel price increase of 11% to 17%. This adjustment comes as a response to the rising global crude oil prices, which have significantly inflated the cost of petroleum products. To address the gap between the selling price and the production cost, the pricing change was introduced.
Diesel subsidies represent 70% of the country's annual petroleum product subsidies. Egypt consumes approximately 18 billion litres of diesel annually, with the government providing around EGP 6.5 in support per litre.
In the first quarter of this fiscal year, fuel subsidies amounted to EGP 39.3 billion, indicating the substantial impact of global market fluctuations on Egypt's economy.
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