CAIRO: The increase of fuel prices will be applied after Ramadan, the ninth month of the Islamic calendar, head deputy of Egyptian General Petroleum Corporation Amr Mostafa told Youm7 Sunday.
Mostafa added that conflicting statements published Friday about the increase lead to a high rate of fuel consumption, Mostafa added.
Petrol consumption exceeded by 25 percent and gasoline consumption exceeded by 15 percent due to the “rumors”, he said.
On Friday, an anonymous official from the ministry of petroleum told Al-Shorouq that the government decided to increase the prices of petroleum products by 1 EGP per liter starting next week. However, another government source told Al-Masry Al-Youm that the new system will be applied this Tuesday, adding that the price of 80-grade fuel will increase from 90 to 140 piasters per liter, while 92-grade fuel will increase from 185 to 235 piasters per liter.
The Minister of Petroleum Sherief Ismail held an emergency meeting with corporate officials to discuss fuel prices after the leaked remarks.
The increase of fuel prices came in light of government efforts to shrink the budget’s deficit, especially after President Abdel Fatah al-Sisi refused the proposed budget a few days ago.
Government subsidies on petroleum were reduced in the budget of Fiscal Year 2014-15. They will work on cutting down the allocations to 80 billion EGP ($11.18 billion) instead of 104 billion EGP, Al-Masry Al-Youm said.
Egypt also suffers a shortage in fuel required for power plants, the Minister of Electricity earlier stated adding that the country will be living in darkness during the summer.
Hafez Salmawy, head of the Egyptian Electric Utility and Consumer Protection Regulatory Agency, told The Cairo Post in April that recent power outages are due to a lack of fuel to run power stations.