Egypt Independent: Economy-Main news http://www.egyptindependent.com//enhome_channel/Economy/rss.xml en Minister: Egypt receives oil aid of US$700 million monthly http://www.egyptindependent.com//node/2435754 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/04/22/459151/_hos5577.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>Petroleum Minister Sherif Ismail said Egypt receives oil aid estimated at around US$700 million monthly&nbsp;from Arab countries like Saudi Arabia, Emirates and Kuwait.</div><div>&nbsp;</div><div>In a phone call with a talk show aired on the privately-owned CBC TV channel on Tuesday, Ismail said that another installment of about $1 billion of dues of the foreign countries working in petroleum field will be paid during the coming two months.</div><div>&nbsp;</div><div>Each of Saudi Arabia, Emirates and Kuwait promised financial and petroleum aid to Egypt that reached $12 billion since ouster of deposed President Mohamed Morsy in July.</div><div>&nbsp;</div><div>The Arab petroleum aid is a pivotal source for Egypt to make up for the local shortage of petroleum supply which caused the government to approve plan to limit electricity loads due to shortage in fuel used in operating electricity generation stations.</div><div>&nbsp;</div><div>Egypt is working to restructure its energy subsidies to reduce burdens on the state budget. Energy subsidy reached LE128 billion during the last fiscal year.</div><div>&nbsp;</div><div>&nbsp;</div><div><em>Edited translation from MENA</em></div> Wed, 23 Apr 2014 10:43:00 +0000 MENA 2435754 at http://www.egyptindependent.com sites/default/files/photo/2014/04/22/459151/_hos5577.jpg Sources: Natural gas, electricity prices to go up next month http://www.egyptindependent.com//node/2435721 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/02/25/94/ibrahim_mehleb.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p dir="ltr">The Egyptian government will start applying the prime minister&#39;s decision about the increase in prices of natural gas and electricity consumption next month, sources told&nbsp;Al-Masry Al-Youm.</p><p dir="ltr"><span style="font-size: 1em; line-height: 1.5em;">Other sources from the petroleum ministry added that the increase in natural gas prices for home consumers comes as part of a plan to rationalize consumption and reduce subsidies, which was LE128 billion last year and is expected to reach LE140 billion by the end of this fiscal year.</span></p><p><span style="font-size: 1em; line-height: 1.5em;">The ministry, according to the source, has several scenarios to reduce the subsidy, including increasing natural gas prices for homes while considering the various brackets of consumption. Most homes fall within the lowest bracket of monthly consumption, which is between 25 and 50 square meters.&nbsp;</span></p><p dir="ltr"><span style="font-size: 1em; line-height: 1.5em;">The new price will be 40 piasters per square meter up to 25 square meters, 100 piasters per square meter up to 50 square meters and LE1.50 thereafter.&nbsp;</span></p><p dir="ltr"><span style="font-size: 1em; line-height: 1.5em;">The increase in prices for gasoline octane 80 will be LE185 instead of&nbsp;</span><span style="font-size: 1em; line-height: 1.5em;">85 piasters</span><span style="font-size: 1em; line-height: 1.5em;">. Gasoline octane 92 will increase from LE185 to LE285. The proposals also include increasing diesel oil prices from LE1.1 to LE2, in order to reduce consumption, especially that it uses up more than 50 percent of the annual subsidy allocations amounting to more than LE60 billion annually.</span></p><p><span style="font-size: 1em; line-height: 1.5em;">Governmental sources also said that electricity prices will go up for upper class consumers.</span></p><p dir="ltr">&nbsp;</p><p dir="ltr"><em>Edited translation from Al-Masry Al-Youm</em></p> Tue, 22 Apr 2014 10:28:00 +0000 Al-Masry Al-Youm 2435721 at http://www.egyptindependent.com sites/default/files/photo/2014/02/25/94/ibrahim_mehleb.jpg Supply Minister: No plans to cancel subsidies http://www.egyptindependent.com//node/2435713 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/02/22/484151/image.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p style="font-size: 14px;">Supply Minister Khaled Hanafy has reiterated that the government has no intentions to cancel subsidies for low-income citizens.</p><p dir="ltr" style="font-size: 14px;">&ldquo;All decisions are aimed at delivering subsidies to needy beneficiaries,&quot; &nbsp;the minister said in exclusive statements to&nbsp;<i>Al-Masry Al-Youm</i>.</p><p dir="ltr" style="font-size: 14px;">Hanafy added that the new system for distributing subsidized bread will help tremendously in rationing wheat consumption, eliminating flour smuggling and reducing wheat imports.</p><p dir="ltr" style="font-size: 14px;">&ldquo;Each citizen will receive 500 grams of bread (five loaves), which is up from 250 grams,&quot; he said.</p><p dir="ltr" style="font-size: 14px;">&nbsp;</p><p dir="ltr" style="font-size: 14px;"><em>Edited translation from Al-Masry Al-Youm</em></p><p>&nbsp;</p> Mon, 21 Apr 2014 16:00:00 +0000 Al-Masry Al-Youm 2435713 at http://www.egyptindependent.com sites/default/files/photo/2014/02/22/484151/image.jpg Egypt Gas: Higher prices save LE1 bn yearly http://www.egyptindependent.com//node/2435711 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/04/09/484151/33420.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p style="font-size: 14px;">The government&#39;s decision to raise natural gas prices for home users will save the state LE1 billion annually, said Egypt Gas CEO Faisal Abul Ezz.</p><p dir="ltr" style="font-size: 14px;">In a phone interview with CBC, Abul Ezz said the decision will lessen the gap between local prices and international ones, from 7 percent to 20 percent of world rates.&nbsp;</p><p dir="ltr" style="font-size: 14px;">He said that prices will be reviewed annually in order to adapt to world rates.</p><p dir="ltr" style="font-size: 14px;">He said, however, that the raise will not affect subsidized LE8 butane cylinders.</p><p dir="ltr" style="font-size: 14px;">Egypt is leaning towards lessening energy subsidies for the rich and for factories to relieve the burden on the state budget and the economy, which had been negatively impacted by two uprisings since 2011.&nbsp;</p><p dir="ltr" style="font-size: 14px;">Energy subsidies represent at least 10 percent of GDP.</p><p dir="ltr" style="font-size: 14px;">&nbsp;</p><p dir="ltr" style="font-size: 14px;"><em style="line-height: 1.5em;">Edited translation from Al-Masry Al-Youm</em></p><p><br /><br /><br />&nbsp;</p> Mon, 21 Apr 2014 13:11:00 +0000 Al-Masry Al-Youm 2435711 at http://www.egyptindependent.com sites/default/files/photo/2014/04/09/484151/33420.jpg