Egypt fuel demand falls 5% a month after price hike

Fuel consumption rates in Egypt fell 5 percent in July, one month after cutting fuel subsidies under an IMF-backed reform programme, said an official source at Misr Petroleum Co.

Egypt introduced earlier this month its latest round of fuel subsidy cuts, a key requirement of a three-year, $12 billion reform programme signed with the International Monetary Fund in 2016. The increases followed hikes to fuel, electricity and public transport prices.

Gasoline consumption rate also witnessed a decline to 1-1.1 million tonnes per month, compared to 1.2 million tonnes earlier this year, the source told Amwal Al Ghad. Butane consumption rate fell to 330,000 tonnes in various governorates, he added.

The consumption rate of petroleum products has reached 2.2 million tonnes a month from 2.4-2.5 million tonnes, the source said.

“The consumption rates are witnessing a gradual decline in the coming three months that follow the fuel subsidy cuts. The increase in the fuel prices are affecting some certain groups in the society,” the source said