Egypt devaluation doubles fuel subsidy bill to 78bn pounds in first 9 months

Egypt’s government spent 78 billion Egyptian pounds ($4.32 billion) on fuel subsidies in the first nine months of the 2016-17 financial year, up from 41 billion in the same period of the previous year, Oil Minister Tarek al-Molla told Reuters.

The cost of fuel imports has soared since Egypt floated its pound currency in November, allowing it to halve in value against the dollar within weeks.

Egypt plans to gradually reduce fuel and power subsidies as part of reforms aimed at slashing the budget deficit.

Source: Reuters