Egypt still subsidises 15% of fuel in local market

Egypt still subsidises around 15% of the actual cost of fuel, despite the recent fuel price hikes applied on Friday, a government source told Daily News Egypt on Saturday.

The source affirmed all petroleum products are still subsidised at different rates, adding that the actual cost formula is based on the Egypt's share of the crude oil, the value of the partner's production, crude oil exports, as well as the current exchange rate.

Furthermore, Egypt is currently considering hedging with fluctuations in the exchange rate, the source revealed, explaining that in parallel to continuing the oil hedging mechanism, applied in the fiscal year (FY) 2018/19, the state would secure the fuel subsidy budget in FY 2019/20 from the risks of oil price fluctuations in the international market.