Egypt sees lower consumption of octane 95 in 2013/14

Egypt’s consumption of high quality octane 95 petrol fell drastically to 5,000 tons during the first nine months of the current fiscal year, which started in July 2013.

According to a statement the petroleum ministry released on Wednesday, the fiscal year of 2012/13 saw a 40 percent drop in consumption of octane 95 as compared to the prior fiscal year. The drop was expected following the increase in price; in late 2012, the government increased the price of the highest quality gas, octane 95, to LE5.90 ($0.84) per litre instead of the subsidised price of LE2.75 ($0.39) per litre.

Burdened by a huge subsidy bill which eats into the national budget, the government has announced intentions to cut energy subsidies as means to reducing the deficit.

It also raised prices for cement companies that use mazut fuel for production by 130 percent, from LE1,000 ($143) per tonne to LE2,300 ($328) per tonne.