{"id":628983,"date":"2018-05-20T03:55:30","date_gmt":"2018-05-20T03:55:30","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/"},"modified":"2018-05-20T03:55:30","modified_gmt":"2018-05-20T03:55:30","slug":"govt-preparing-to-tweak-budget-for-higher-oil-prices","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/","title":{"rendered":"Gov\u2019t preparing to tweak budget for higher oil prices?"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>EXCLUSIVE- Gov\u2019t preparing to tweak budget for higher oil prices?<\/strong> The Ismail Cabinet will decide in the coming two weeks whether to raise the overdraft limit in the FY2017-18 budget to give itself breathing room in the context of climbing oil prices, Vice Minister of Finance Mohamed Maait tells Enterprise. The budget was originally drafted with oil at USD 60-64 \/ bbl and assumed an average cost of USD 67 per bbl \u2014 but <a href=\"https:\/\/blogs.wsj.com\/moneybeat\/2018\/05\/17\/energy-journal-oil-breaks-through-80-as-firms-exit-iran-due-to-u-s-sanctions\/\">the black stuff has since hit USD 80<\/a> in trading on Thursday. Every USD 1 increase in the price of a barrel of oil raises government energy spending EGP 3-4 bn, Maait added. The government had budgeted EGP 110 bn for energy subsidy spending at an average oil price of USD 55\/bbl.<\/p>\n<p><strong>Tightening consumption of petroleum products will help mitigate the impact of rising oil prices <\/strong>on the next budget, Finance Minister Amr El Garhy told the press on Thursday, <a href=\"http:\/\/www.shorouknews.com\/news\/view.aspx?cdate=17052018&id=f5fc60c1-2b38-41d0-85f5-adaf91cb5d4f\">Al Shorouk reports<\/a>.<\/p>\n<p><strong>Here\u2019s how (in part): <\/strong>An downstream energy industry insider pointed out to us recently that the USD 1.2 bn the government is spending to accelerate household connections to the natural gas grid will be key. A typical Egyptian low-to-middle income household preparing three meals daily consumes roughly two LPG cylinders a month at a subsidized cost of EGP 60 per month against a market rate north of EGP 100. The same household connected to the national distribution grid would consume gas worth EGP 30-40 per month, a savings of about 60%. Toss in the natural impact on consumption of higher gasoline, diesel and electricity prices \u2014 all expected to rise starting 1 July \u2014 and you start to get the picture.<\/p>\n<p>The House of Representatives\u2019 Budget and Planning Committee, meanwhile, has <strong>recommended that spending on health, education, railways, and the State Information Service be increased <\/strong>in the FY2018-19 budget, <a href=\"http:\/\/www.almalnews.com\/Story\/376302\/19\/-%D8%AE%D8%B7%D8%A9-%D8%A7%D9%84%D9%86%D9%88%D8%A7%D8%A8--%D8%AA%D9%88%D8%B5%D9%89-%D8%A8%D8%B2%D9%8A%D8%A7%D8%AF%D8%A9-58-2-%D9%85%D9%84%D9%8A%D8%A7%D8%B1-%D8%AC%D9%86%D9%8A%D9%87-%D8%A8%D9%85%D8%AE%D8%B5%D8%B5%D8%A7%D8%AA-5-%D9%82%D8%B7%D8%A7%D8%B9%D8%A7%D8%AA\">Rep. Yasser Omar tells Al Mal<\/a>. The committee seeks to increase spending on health, specifically university hospitals, by EGP 10 bn, according to Omar. Health Minister Ahmed Rady <a href=\"https:\/\/enterprise.press\/stories\/2018\/05\/13\/cabinet-agrees-to-allocate-additional-egp-2-6-bn-to-healthcare-in-fy2018-19-from-other-ministries-surplus\/\">reportedly said last week<\/a> that the Ismail Cabinet agreed to give the health ministry an additional EGP 2.6 bn next year. The Budget Committee is expected to conclude its review at the start of June.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EXCLUSIVE- Gov\u2019t preparing to tweak budget for higher oil prices? The Ismail Cabinet will decide in the coming two weeks whether to raise the overdraft limit in the FY2017-18 budget to give itself breathing room in the context of climbing oil prices, Vice Minister of Finance Mohamed Maait tells Enterprise. The budget was originally drafted [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-628983","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"f28bcf16-f637-4292-a899-b1a720c8ef2e","order":"0","is_powered_by":true,"section_story_id":"a2fbeb4e-fcb2-434c-924a-9eeb3e2167a1","story_type":"1","photo_url":"","photo_position":"above","related_issue":[628968],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Gov\u2019t preparing to tweak budget for higher oil prices? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gov\u2019t preparing to tweak budget for higher oil prices?\" \/>\n<meta property=\"og:description\" content=\"EXCLUSIVE- Gov\u2019t preparing to tweak budget for higher oil prices? The Ismail Cabinet will decide in the coming two weeks whether to raise the overdraft limit in the FY2017-18 budget to give itself breathing room in the context of climbing oil prices, Vice Minister of Finance Mohamed Maait tells Enterprise. The budget was originally drafted [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2018-05-20T03:55:30+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Gov\u2019t preparing to tweak budget for higher oil prices?\",\"datePublished\":\"2018-05-20T03:55:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/\"},\"wordCount\":368,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/\",\"name\":\"Gov\u2019t preparing to tweak budget for higher oil prices? - EnterpriseAM Egypt\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#website\"},\"datePublished\":\"2018-05-20T03:55:30+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/egypt\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Gov\u2019t preparing to tweak budget for higher oil prices?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#website\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/\",\"name\":\"EnterpriseAM\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/egypt\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\",\"name\":\"EnterpriseAM\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/240894.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/240894.svg\",\"caption\":\"EnterpriseAM\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/egypt\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Gov\u2019t preparing to tweak budget for higher oil prices? - EnterpriseAM Egypt","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/20\/govt-preparing-to-tweak-budget-for-higher-oil-prices\/","og_locale":"en_US","og_type":"article","og_title":"Gov\u2019t preparing to tweak budget for higher oil prices?","og_description":"EXCLUSIVE- Gov\u2019t preparing to tweak budget for higher oil prices? 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Our math suggests government spending will increase 9% during the year in what Finance Minister Mohamed Maait called Egypt\u2019s\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/3\/350.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":569160,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/16\/egypt-hedged-against-rising-oil-prices-this-year-maait-confirms\/","url_meta":{"origin":628983,"position":1},"title":"Egypt hedged against rising oil prices this year, Maait confirms","author":"enterpriseam admin","date":"16 February 2020","format":false,"excerpt":"Egypt hedged against rising oil prices this year, Maait confirms: Egypt took out hedging contracts to guard against rising oil prices during the current fiscal year, Finance Minister Mohamed Maait confirmed in an interview with Bloomberg. The government hedged \u201cseveral times\u201d this year and \u201cwill hedge again during the year\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/2\/202.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":595781,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/06\/government-seeking-to-increase-oil-hedging-contracts-this-fiscal-year\/","url_meta":{"origin":628983,"position":2},"title":"Government seeking to increase oil hedging contracts this fiscal year","author":"enterpriseam admin","date":"6 August 2019","format":false,"excerpt":"EXCLUSIVE- Gov\u2019t mulls signing fuel hedging contracts with more banks this fiscal year: The government is planning to at least double the number of oil hedging contracts it will sign for FY2019-2020 and is currently reviewing bids from several banks, two government officials told Enterprise. The government will sign up\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":629410,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/30\/is-govt-hinting-fuel-prices-could-rise-more-than-previously-expected\/","url_meta":{"origin":628983,"position":3},"title":"Is gov\u2019t hinting fuel prices could rise more than previously expected?","author":"enterpriseam admin","date":"30 May 2018","format":false,"excerpt":"Is gov\u2019t hinting fuel prices could rise more than previously expected? The Ismail Cabinet has reportedly been importing fuel at a price of USD 75\/bbl, according to documents, which state-owned Ahram Online claims to have obtained. 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