Cabinet to remove subsidies for octane 95 gas

Cabinet to remove subsidies for octane 95 gas

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Wed, 21/11/2012 - 16:43

 

The Cabinet will remove subsidies on octane 95 gasoline, International Cooperation and Planning Minister Ashraf al-Araby said Wednesday.

Octane 95 gasoline will be distributed using coupons starting in April, Araby told reporters at the cabinet headquarters. He also said 1600cc vehicles would have special shares.

Reducing the subsidies that represent a quarter of government spending is an essential prerequisite for the International Monetary Fund’s US$4.8 billion dollar loan, which the government hopes can bridge the state budget deficit.

The government spent LE115 billion on subsidies for petroleum products last year.

Prime Minister Hesham Qandil had told Reuters on Sunday that the government would remove subsidies for the high-grade fuel within a week.