Egypt's cabinet dismisses reports on new fuel prices increase

The Egyptian cabinet has dismissed media reports about a new wave of fuel price hikes or limiting individuals' shares of subsidised petroleum products after the government's decision to implement the fuel smart card system.

The Egyptian's cabinet Information and Decision Support Center (IDSC) said on its website on Tuesday that it communicated with officials in the petroleum ministry who described reports of fuel prices increase as "inaccurate."  

Egypt began a trial run for the fuel smart card system on Sunday, with official assurances that the system does not limit individuals' share of subsidised fuel.

The fuel card system at Egyptian gas stations is part of a governmental programme to prevent the leakage of subsidised petroleum products onto the black market and into the hands of smugglers.

In 2014, the government embarked on an economic reform programme to phase out energy subsidies in an attempt to curb the growing state budget deficit, which is estimated at 12.3 percent in the fiscal year 2015/16.

On 3 November 2016, prices rose up between 35 to 50 percent for all kinds of fuel, after the central bank's decision to float the Egyptian pound.

The government plans to trim the petroleum subsidy bill in the 2016/17 budget by 43.5 percent to reach EGP 35 billion. The state budget was approved by parliament in July

Source: Ahram online