Egypt's 2015/16 petroleum subsidy spending down 23pct

Egypt's spending on petroleum subsidies fell by 23 percent in 2015/16 to EGP 55 billion ($6.27 billion), Tarek Al-Hadidi, head of state oil company EGPC, told Reuters on Monday.
Egypt has been trying to lower subsidies which eat up a big chunk of the state budget.

Petroleum product subsidies cost EGP 71.5 billion in 2014/15. Egypt aims to lower this to about 35 billion in the financial 2016/17 which began last month.

"Petroleum product subsidies have decreased to EGP 55 billion in 2015/16 from a targeted EGP 61 billion . The reason for the decrease is lower global oil prices," Al-Hadidi said.

In 2014 the government cut spending on energy subsidies, causing domestic prices of natural gas, diesel and other fuels to rise by as much as 78 percent.