The Cabinet has decreased allocations of butane gas subsidy by LE3.8 billion reaching LE19.1 billion within the state budget of the new fiscal year 2014-2015, compared to LE22.9 billion within last year’s state budget which ended on 30 June.
The statement of 2014-2015 fiscal year’s budget published on Ministry of Finance’s website said the amounts of butane gas planned to be offered in the market declined by 40 million tons, compared to 2013-2014 budget.
Planning Ministry Ashraf al-Araby said few days ago that the cabinet will add a butane gas cylinder for each ration card within three months. “Families and trade sectors will obtain a butane gas cylinder this year at the same subsidized price. Next year the price will be increased for the trade sector, while families will get it at the same subsidized price,” he said.
Cabinet increased price of the butane gas cylinder of 12.5 kilogram weight from LE4 to LE8 in April. The price of the cylinder of 25 kilograms weight for trade sector reached LE16.
Finance Minister Hany Qadry declared on Monday reduction of allocations of energy subsidy including petroleum substances and electricity by LE41 billion reaching LE127 billion within 2014-2015 state budget.
The Cabinet seeks ro reduce the state budget deficit by LE240 billion, which is equal to 10 percent of the gross domestic product, compared to LE243 billion deficit during the previous year, representing 12 percent of the gross domestic product.
Cabinet also plans to remove the energy subsidy within a period of three to five years.