Egypt’s fuel subsidy spending falls 69% y-o-y in 1Q2019-2020

BUDGET WATCH- Fuel subsidy spending plunges in 1Q2019-2020: Government spending on fuel subsidies fell 69% y-o-y in 1Q2019-2020 to EGP 7.25 bn from EGP 23.25 bn in 1Q2018-2019, Oil Minister Tarek El Molla said yesterday, according to Reuters. Egypt has moved to gradually reduce fuel subsidy spending over the past three years under the USD 12 bn IMF-backed economic reform program. The latest round of cuts saw prices rise between 16% and 30% in July. The government aims to reduce its fuel subsidies expenditure to EGP 52.96 bn over the course of the current fiscal year, down from EGP 89.75 bn in FY2018-2019.