Cairo – Mubasher: Egypt’s fuel subsidy will surpass EGP 100 million in fiscal year 2018/2019 budget, a government source said.
The increase in fuel subsidies is mainly driven by the hike in global oil prices, the source told Enterprise.
The Egyptian government cut fuel subsidies for the current fiscal year to EGP 89 billion from EGP 110 billion.
The source noted that the government has not inclined to hedge against risks of the increase in oil prices yet, but it may consider the step this year if global prices maintained rising.
Earlier this week, EFG Hermes’ economist Mohamed Abu Basha told Bloomberg that every increase of $10 in oil prices over the $67 per barrel set in the FY18/19 budget adds $1 billion to 1.2 billion to Egypt’s current account deficit.
