Egypt reduces petroleum products subsidies to EGP 61bn during FY 2015/16: El Molla

Egypt reduced its petroleum product subsidies allocations to EGP 61bn in the budget of the new fiscal year (FY) 2015/2016, according to Tarek El Molla, Egyptian General Petroleum Corporation (EGPC) Executive Chairman.

Egypt’s current budget for the FY 2014/2015 targeted subsidising petroleum products by EGP 100bn, El Molla expects it will not exceed EGP 70bn by the end of June 2015.

El Molla said the first half of the current FY witnessed increase in the average oil global price. However, it was reduced during the second half, which resulted in reducing the subsidy’s value in comparison to what was determined in the budget of the current year.

The government announced its budget for the current FY last Thursday. However, it did not mention the petroleum products subsidies, and announced only the indicators of deficit, debt, growth, and social protection programmes, in addition to other indicators.