Egypt considers postponing fuel subsidy smart card system

Egypt's President Abdel Fattah El-Sisi asked his government on Saturday to consider postponing a smart card system for subsidised fuel which was due to come into effect in two days, state media said.

"The president directed the government to urgently study postponing the application of this system until all the sectors that don't have these cards are covered," the state news agency, MENA, quoted the presidency spokesman Alaa Youssef as saying.

The report had no further details.

Egypt was planning to roll out the new system from June 15, as part of plans to reduce costly energy subsidies over time.

Fuel subsidies have long weighed on Egypt's state budget and contributed to the economic stagnation that El-Sisi promised to tackle when he took office last year.

The government cut fuel subsidies last summer, raising prices by up to 78 percent, in a move lauded by economists but criticised by some Egyptians accustomed to cheap energy. More subsidy cuts are expected in the coming years.