Egypt Independent

Contractors blame Petroleum Ministry for fuel shortages, project delays

The Contractors Union has demanded the Petroleum Ministry allocate a share of diesel to contractors to ensure that they are able to continue to work and finish projects in a timely manner.

The union holds the ministry responsible for the delay in numerous projects, which has led to fines being imposed on contractors.

Union head Hassan Abdel Aziz demanded the easing of “severe” restrictions imposed by the Egyptian General Petroleum Corporation on the allocation of diesel quotas for contracting companies.

He said the only documents the EGPC should require are copies of project contracts, equipment consumption rates and inspection records of equipment on the site, including petroleum tanks.

Mohamed Aboul Enein, deputy head of the union, said that the EGPC was previously committed to meeting the sector’s fuel needs, but it now only covers a maximum of 10 percent, which has prompted contractors to resort to the black market.

The Petroleum Ministry forces contractors to provide too many documents, he said.

The union has received numerous complaints from contractors suffering delays and fines, due mainly to the lack of diesel fuel, prompting major work disruptions on road projects and new construction.

Aboul Enein called for the need to activate the Law 5 issued in 2005, which gives contractors the right to modify iron and cement prices, and demanded that other materials, including diesel and fuel oil, be added to the law due to price increases.

Edited translation from Al-Masry Al-Youm