Egypts latest budget expected to include $8bn earmarked for fuel subsidies despite further subsidy cuts
- Cairo looks expected to earmark $8bn for fuel subsidies
- 2015/16 draft budget released
- More fuel subsidies expected as Egypt looks to alleviate increasing imports
Egypt has earmarked $8bn for fuel subsidies in its draft 2015/16 budget according to a statement released by the state-run Egyptian General Petroleum Corporation (EGPC).
On Thursday the cabinet approved a draft budget for the next fiscal yeart starting 1 July although the budget itself did not stipulate the exact amount allocated to fuel subsidies.
The government cut fuel subsidies in mid-2014, raising prices by up to 78 per cent. The move was praised by economists but criticised by some Egyptians accustomed to cheap energy. More subsidy cuts are expected in the coming years.
Sisi also asked his government earlier this month to consider postponing a smart card system for subsidised fuel which was due to come into effect on 15 June.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.