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English news

21-Mar-2017

Government’s plan to cut down on subsidies ends in 2019

The government does not plan to fully eliminate fuel subsidies, said the Minister of Petroleum, Tarek El Molla, in an interview. The timeline to reduce spending on fuel subsidies will end in 2019, but the government will keep paying for fuel subsidies after that, he added. Egypt had only committed to reducing fuel subsidies in its agreement with the IMF, but had agreed to a complete phase-out of subsidies for electricity in the coming five years. The Minister said that international oil companies had committed to reinvesting the arrears Egypt pays them, and has pledged USD10bn in new investments by end of current fiscal year. The private sector will not begin importing natural gas to Egypt until 2018 as part of the sector’s deregulation plan. An agreement to process and export gas from Cyprus will come into effect for another two years. Egypt will retain at least one FSRU even after it stops importing LNG. 

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