No petrol price increase in FY 2015/2016: Petroleum minister

The government will not increase domestic petroleum prices in fiscal year (FY) 2015/2016 due to a decrease in prices of Brent crude oil on the global markets.

There are expectations that its prices will continue to range between $70-$80 per barrel for the next two years.

Petroleum Minister Sherif Ismail told Daily News Egypt the government will not raise domestic fuel prices in FY 2015/2016, as it is not suitable for the situation in Egypt.

He added that the liberalisation plan for fuel prices set by the government remains the same, and will not necessarily change. It is expected to be implemented over five years, with work on it having started in the current fiscal year.

The Egyptian government raised fuel prices by 75% last July as part of the Egyptian economy’s reform project, Ismail said.

He added that the economic situation of the Egyptian citizen does not allow any price changes during FY 2015/2016. The decrease in Brent prices will contribute to a decline in the fuel subsidy bill, with a stability of prices in local markets.

He noted that the fuel subsidy bill for FY2014/2015 has decreased to EGP 80bn, instead of EGP 100bn, due to the Brent price decrease.