Egypt awaits Saudi Arabia, Kuwait response on additional fuel aid, says petroleum minister


In a press conference held on Friday, on the sidelines of the visit to petrol production sites in Port Said, Petroleum Minister Sherif Ismail said the government drew two scenarios to provide the petroleum products in 2014.

“The first scenario, does not depend on Arab countries aid, while the second depends on Arab financial allocations to fund the oil imports,” he added.

Egypt is expected to receive the last free fuel shipment, estimated at US$ 4 billion, from Saudi Arabia, Emirates and Kuwait on 31 December.

Oil aid sent from Arab countries, following ouster of deposed President Mohamed Morsy, has relatively fulfilled people’s needs.

However, Ismail added that Egypt requested from each of Kuwait and Saudi Arabia to finance fuel imports next year. Response is still awaited.

“In case of no-response, we are ready to manage the financial allocations to import the petroleum products,” he added.

Egyptian petroleum authority’s monthly imports of petroleum products reach US$1.3 billion. They are provided within the local market at subsidized prices.

Subsidy that goes to these products in the 2012-2013 fiscal year budget reached LE128.3 billion, according to statements by the authority.

Mahmoud abdel Rahman, direct investment expert, told the Turkish news agency Anadolu on Saturday, that the Arab fuel aid are pivotal to avoid negative effect on availability of products in the market.

“In case the cabinet depended on itself in providing the petroleum substances, it will deplete the foreign reserve, like what happened after 25 January 2011 revolution,” he added.

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