*Egypt’s crude production averaged 630,000 b/d in Q1 2019 versus average refinery intake of 500,000 b/d. But the country’s aging refinery fleet means that output of key products continues to fall far short of demand. Diesel output of 147,000 b/d equates to just 54% of demand; for gasoline, output of 81,000 b/d met just 51% of 160,000 b/d demand (see table).
*That said, the shortfall has been on a downward trend since 2015-16 (see chart) as domestic consumption has edged lower on the back of the gradual removal of subsidies on transport fuels. Cairo aims to reach cost recovery on most fuel products by next month (MEES, 8 February). Power subsidies are also being cut (MEES, 24 May). (CONTINUED - 332 WORDS)