Egypt not cutting fuel subsidies before July 2018

Egypt is not considering an increase in fuel prices before 30 June 2018, at the end of the current fiscal year, and is planning to stop importing gas before the end of next year, Egypt's oil minister Tarek El-Molla said at a press conference on Saturday.

El-Molla said that the government is planning to lift fuel subsidies gradually until they are entirely removed within five to 10 years. However, subsidies on diesel fuel and gas cylinders will remain in place, as it is difficult to provide gas in several areas in Egypt.

The minister said that the aim of lifting subsidies is to rationalise consumption – which has saved EGP 4 billion this year – and to guarantee that subsidies are benefiting only those who need them.

In November 2016, the government started cutting fuel subsidies as part of an economic programme – which also involved floating the currency – implemented to help secure a $12 billion IMF loan deal.

The last fuel subsidy cut came in June, with the government saying that economic reform measures can no longer be delayed.

El-Molla also said that Egypt is expected to stop imports of liquefied gas by the end of 2018, as production on the country’s giant Zohr gas field is set to start before the end of 2017.