The Egyptian government paid a total of EGP15 billion to subside fuel and oil derivatives in the first quarter of the current 2015-2016 fiscal year (started in July).
The country’s Minister of Petroleum and Mineral Resources, Tariq al-Mulla, noted that the government allocated EGP61.7bn for fuel subsidy in this year’s budget.
According to the minister, the figure was decided in light of the decline in global prices of oil and after cement industries switched to coal as an alternative fuel. He added that this led to lower quantities of subsidised fuel.
According to remarks published by Al Mal News, the minister spoke about ongoing efforts to rationalise power and fuel consumption and boost energy efficiency.
He said that the ministry has been intensifying its efforts with foreign companies to accelerate the completion of natural gas discoveries in the Mediterranean in order to back up the country’s natural gas production and offset the gap in supply.
It is noteworthy that the Egyptian president has recently endorsed five more agreement for gas and oil exploration at investments of more than $2.2bn, entailing the digging of ten wells in various parts of the country.
(EGP1 = AED0.46, at the time of publishing)