Govt to abolish 95-octane gas subsidy by year end

Planning Minister Ashraf al-Araby said the government plans to abolish the 95-octane gasoline subsidy before the end of the year.

New methods will be implemented to regulate butane and gasoline subsidies following the social dialogue initiative the Cabinet is conducting to discuss the country's economic, social and financial problems, he said.

The minister said that the government is considering alternative distribution methods for butane cylinders and may link the butane subsidy to ration cards.

"There is no option but to regulate energy subsidies, but we are looking for the best method to ensure the subsidies reach those who need them while reducing the burden on the state budget," said Araby.

The government also plans to consider progressive taxes, the minister said, qualifying that the reform plan has nothing to do with IMF loan negotiations.

The Petroleum Ministry said the plan to restructure fuel subsidies would be implemented all at once and that public opinion would be solicited afterward.

Deputy Petroleum Minister Mahmoud Nazeem told Al-Masry Al-Youm that the ministry is working with several entities to implement a plan to regulate consumption.  

Under the proposed system, a car owner could buy 1,800 liters of gasoline per year (150 liters per month) for LE3,200, compared to LE2,500 in a previous plan.

Microbuses and trucks would be allocated 10,000 liters a year, or 30 liters a day. Consumption in excess of these predetermined amounts would be subject to unsubsidized rates.

Nazeem said that the concerned ministries have not yet set the price of consumption over the subsidy quotas.

Edited translation from Al-Masry Al-Youm

Related Articles

Back to top button