Friday, September 20, 2019
Advertisement

Egypt slashes fuel subsidy to ease economic pressure

Egypt slashes fuel subsidy to ease economic pressure
July 05
15:07 2019
Advertisement

The Egyptian government has slashed fuel subsidies in a bid to ease pressure on public finances.

The development, which took effect on Friday, is part of its three-year economic overhaul backed by the International Monetary Fund (IMF) to curb government spending.

Before the slashing, gasoline, diesel, kerosene and fuel oil were sold at 85-90 percent of their international cost.

The development will raise domestic prices by between 16 percent and 30 percent.

The price of widely used 92 octane grade petrol rose by 18.5 percent while lower quality 80 octane rose by 22.7 percent

Higher grade 95 octane fuel rose by 16.1% to 9 Egyptian pounds ($0.5428) a litre, and diesel rose by 22.7% to 6.75 pounds per litre. The price of cooking gas cylinders rose by 30% to 65 pounds for domestic use and 130 pounds for commercial use.

While it is a relief on the economy, the subsidy cut would take its toll on local commodity prices.

The government had announced in June that electricity prices would rise by almost 15 percent in the fiscal year which began July 1.

In Nigeria, several stakeholders have called on the federal government to remove fuel subsidy or risk falling into bankruptcy.

As at April, the federal government was spending N1.86bn on subsidy daily.

Last month, Muhammadu Sanusi, emir of Kano, asked President Muhammadu Buhari to end fuel subsidies. He had said “N1.5 trillion on subsidy is N1.5 trillion out of education“.

Three days ago, Stuart Symington, US ambassador to Nigeria, advised the federal government to get rid of fuel subsidy.

RECEIVE ALERTS FROM THECABLE

WHATSAPP 08113975334
TWITTER @thecableng
Copyright 2019 TheCable. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from TheCable.
Tags
Advertisement

Social Comments

0 Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Write a Comment

Your email address will not be published.
Required fields are marked *

*

Advertisement
Advertisement

Exchange Rates

September 16, 2019USDGBPEUR
INTERBANK306397354
LAGOS362475413
KANO361474413
PH361475412
ABUJA362476413
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement