Cairo - Mubasher: Fuel subsidies reform in GCC will ease their pressures due to crude prices drop. At the same time they are not enough to set their public finances, according to Moody's Investors Service report on Tuesday.
According to the International Monetary Fund, oil represents more than 50% of GCC’s GDP.
Crude prices tumbled since mid-2015 by about 70%.
The ratings agency said in its report that savings which GCC will achieve by fuel subsidies reform are expected to be insignificant.
Moody's also added that even if GCC linked fuel prices with world prices, this also would not be sufficient compared to projected deficit to these countries’ budgets by 12.5% during this year.
The agency’s report was based on the assumption that oil price is about $33 a barrel this year.
