Fuel price increase part of economic reform system

The recently-taken decision to increase fuel prices is part of Egypt's economic reform system, Prime Minister Sherif Ismail said.

It was necessary to take this decision to ensure that subsidy is delivered to those who deserve it, the premier said at a press conference on Thursday.

This move comes as part of the government's bids to provide high quality services to citizens, he added.

The cabinet had approved an increase in fuel prices as of Thursday morning.

The price of 80-octane fuel rose from 2.35 to 3.65 pounds per liter, while the price of 92-octane gasoline rose from 3.5 to 5 pounds per liter.

As for diesel, its price increased from 2.35 to 3.65 pounds per liter.

The price of cooking butane gas cylinder also increased from 15 to 30 pounds. 
It was necessary to increase the fuel prices, otherwise the subsidy of petroleum products would hit 150 billion pounds, Prime Minister Sherif Ismail said.

Egypt's total subsidy is expected to reach 333 billion pounds in the 2017-2018 fiscal year compared to 270 billion pounds in the current fiscal year, the premier noted.

Ismail revealed the government's plan to decrease the budget deficit to 9.1 percent from the current 10.8 percent.

He said the government also seeks to reduce public debt to 95% of the gross domestic product in the new budget.

The single butane gas cylinder costs the state 115 pounds, while the citizen pays only 15 pounds to get it, so it necessary to increase its price to 30 pounds, the prime minister added.

Source: MENA