Egypt to cut down on energy subsidies from July
By July and Egypt plans to cease energy subsidies to industries that are not energy intensive.
The Egyptian government had annulled a plan to cut down the subsidies three years back following the global meltdown.
Rachid Mohamed Rachid, minister, said, "With the start of the new fiscal year, the government will resume the policy it laid down three years ago to eliminate energy subsidies to factories." Egypt’s fiscal year starts July 1.
“The second half of the current year will witness the first stage of price rises, then annual increases will be implemented to reach world prices," Rachid said.
Those Cement firms that obtain their licenses in the coming period will need to be self sufficient to meet their energy requirements, even if they have to import oil and gas. This is in the eventuality of the decision of the Petroleum Ministry deciding not to supply them with their needs.
The Egyptian government spent $10.95 billion on energy subsidies in 2007-08. The government spent 20 billion pounds on gas subsidies to energy-intensive companies.
Published under Cement News
