Oil subsidies spending drop 23%, hit $6bn in FY2015-16: Egypt’s EGPC

The total volume of spending on Egypt’s oil subsidies dropped 23 percent in financial year 2015-16, Chairman of state-owned Egyptian General Petroleum Corporation (EGPC), Tarek El Hadidi stated Monday.

He added that oil subsidies spending recorded 55 billion Egyptian pounds (US$6.19) in fiscal year 2015-16 opposed to 71.5 billion pounds in 2014-15.

The Egyptian government targets decreasing spending on petroleum products to 35 billion pounds during the current financial year, the official added.

Chairman El Hadidi noted that oil subsidies dropped to 55 billion pounds from a targeted 61 billion pounds due to the lower global oil prices.

In 2014 the government cut spending on energy subsidies, causing domestic prices of natural gas, diesel and other fuels to rise by as much as 78 percent.