Egypt’s fuel subsidy bill rises 1 bln pounds in Q1-FY2018/19

Egypt’s fuel subsidy bill hiked by nearly one billion Egyptian pounds ($55.7 million) during the first quarter of financial year 2018/2019, said Finance Minister on Thursday.

The hike in oil prices did not have a remarkable impact on the North African country’s budget as it was expected, Mohamed Maait told Enterprises on the sidelines of EFG Hermes conference.

The increase in fuel subsidies came below expectations due to lower consumption, mainly diesel, Maait highlighted.

He stressed that the government is still considering the activation of an agreement to hedge against risks of the increase in oil prices.

A government source revealed last week that Egypt’s fuel subsidy would surpass 100 million pounds in financial year 2018/2019 budget.

The increase in fuel subsidies is mainly driven by the hike in global oil prices, the source added.