Egypt: Is It Finally Getting Its Energy Finances In Order?

The end to fuel subsidies and IOC ‘receivables’ may finally be in sight.

Egypt is gearing up to remove the majority of fuel subsidies by the start of the next financial year in July. Cairo spent E£121bn ($6.8bn) in the 2017-18 financial year and is on course to spend E£90bn ($5.1bn) in the current financial year (see chart 1).

Egypt’s central bank chief Tarek Amer and Finance Minister Mohamed Maait, in a recent letter to the IMF, published this week as part of the Fund’s latest review of its $12bn Egypt program, say the country has already increased domestic prices for gasoline, diesel, kerosene and fuel oil to “about 85-90%” of market prices and that Egypt “will make additional increases to achieve our objective of 100% cost recovery by 15 June 2019.” (CONTINUED - 883 WORDS)

DATA INSIDE THIS ARTICLE

chart Egypt's Spending On Oil Products Subsidies: Down In Egp, Down More In Dollars
chart Egpc's Receivables Bill With Iocs ($Bn): Target Zero By Mid-2019