Fuel subsidies up 90.2% in the first nine months of FY2016-17

Spending on fuel subsidies increased more than 90% to EGP 78 bn in the first nine months of FY2016-17, compared to EGP 41 bn in the same period in FY2015-16, Oil Minister Tarek El Molla told Reuters. The cost of fuel imports increased significantly since the EGP was floated in November. The newswire says “Egypt plans to gradually reduce fuel and power subsidies as part of reforms aimed at slashing the budget deficit.”

In related news, the Central Bank’s net foreign reserves climbed to USD 28.64 bn at the end of April,up fractionally from USD 28.53 bn at the end of March, according to a CBE statement.