Cairo – Mubasher: The Egyptian government has not reached a decision to implement the planned increase in electricity prices in July, and the government is discussing extending subsidy cut plans for two or three more years, El Watan newspaper reported, citing minister of electricity and energy, Mohamed Shaker.
Shaker said that the plan will not be announced until it is presented to the cabinet.
The minister pointed out that the current prices will not be fixed, noting that if the government fails to trim the sector’s deficit of EGP 82 billion, the service will be reduced within the sector.
The government will not increase the price by 100%, the minister highlighted, stressing that such a policy will be difficult to apply at present, while keeping in mind low-income people.
Oil subsidies could exceed EGP 145 billion in fiscal year 2017/2018, while electricity subsidies could reach EGP 80 billion, bringing the total value to about EGP 225 billion, according to Egyptian prime minister Sherif Ismail.
Egypt aims to reduce the budget deficit to 9% of gross domestic product (GDP) in fiscal year 2017/2018, compared to the expected 10.5% to 10.8% in fiscal year 2016/2017.
