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Egypt taking oil shipments for June needs despite free Gulf fuel-official

Energy prices in Egypt are among the cheapest in the world, with subsidies eating up a fifth of state spending.
21.06.14 | Source: Reuters

Egypt is receiving fuel shipments to cover its needs for this month, an energy official said on Friday, despite $6 billion of free fuel given by its Gulf allies after the army took power last year.

Amr Mostafa, vice president of the state-run Petroleum Authority for Operations, noted in a statement that fuel consumption spikes in the summer months when many Egyptians travel from Cairo to the Mediterranean coast.

The government had supplied all the diesel farmers needed for this year's wheat harvest despite storage problems that had hindered production of the strategic crop last year, he said.

Energy prices in Egypt are among the cheapest in the world, with subsidies eating up a fifth of state spending, and unfettered consumption has led to the worst fuel crunch for years.

Egyptians rioted over long lines at gas pumps just before the ousting of President Mohamed Mursi in July following mass protests against his rule.

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