A recent report issued by the state-run Egyptian General Petroleum Authority (EGPA) revealed that Egypt imported 5.6 million tons of diesel fuel in the 2008/2009 fiscal year at a total cost of LE9.5 billon, accounting for 47 percent of total domestic consumption. The figures suggest that the country is suffering from a serious shortage of petroleum resources.
The report did not, however, factor in the crude oil imported from Arab countries and refined locally.
The report’s findings contradicted recent statements by Petroleum Ministry Undersecretary Mahmoud Nazim, who on Sunday declared that local diesel production covered roughly 75 percent of total domestic consumption, with the remainder being imported from abroad. According to the EGPA report, diesel consumption for the last fiscal year stood at 11.8 million tons, of which only 6.2 million were locally produced.
An EGPA source admitted that the gap between local production and total domestic consumption was widening each year.
Another report, released by the Cabinet Information Decision and Support Center, stated that Egypt ranked ninth in the world in terms of the amount spent on gasoline subsidies and fifth in terms of diesel subsidies. It further noted that 72 percent of the state’s total LE83.7-billion budget for subsidies went towards subsidizing petroleum products.
Translated from the Arabic Edition.