Government to raise electricity and petrol prices next month

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Government to raise electricity and petrol prices next month

Post by DJKeefy »

Egypt's government to raise electricity and petrol prices next month.

Egypt's government is planning to raise the prices of electricity and all state-subsidised fuels with the start of the 2014-2015 fiscal year next month, according to statements made by Planning Minister Ashraf El-Araby, as reported by Reuters.

Speaking at a press conference on Saturday during which the power cut four times, El-Araby told reporters that the cabinet plans to "introduce a series of measures designed to definitively tackle the budget deficit," including a rise in electricity prices for higher-consuming segments of the population and a re-pricing of all petroleum products.

The government's ultimate aim is to completely liberalise prices within the next three to five years, said El-Araby.

Last week, President Abdel-Fattah El-Sisi refused to ratify the state budget for the 2014-2015 fiscal year on the grounds that the budget deficit – projected at LE292 billion, or 12 percent of GDP – was excessively high.

The budget deficit will reach between LE240-250 billion by the end of the current fiscal year on Monday, according to Finance Minister Hany Kadry Demian.

Speaking on private Egyptian satellite channel CBC after El-Sisi's objection to the draft budget last week, Demian said that the government is working to reign in next year's budget deficit to 10 percent of GDP.

This will be achieved through the introduction of a Value Added Tax (VAT) to replace Egypt's current complex and unjust web of sales taxes, said Demian, a move that is eventually expected to bolster state revenues by LE40 billion.

Energy subsidies will also be subjected to further reform through price hikes and other measures, affirmed Demian, without going into further detail.

Egypt's public finances have long been suffering under a sprawling fuel subsidy programme that consumes 20 percent of public spending every year.

In late 2012, the government liberalised the price of the highest quality gas, octane 95, to be sold at LE5.90 ($0.84) per litre instead of the subsidised price of LE2.75 ($0.39) per litre.

It also raised prices for cement companies that use low-quality mazut for production by 130 percent to reach LE2,300 ( $328) per tonne, compared to the previous price of LE1,000 ($143) per tonne.

In the last two months, official sources have been quoted as saying that the costs of three widely-used forms of petrol – 92 octane, 80 octane and diesel – will be raised by LE0.50 to LE1 per litre.

Source: http://english.ahram.org.eg/News/105071.aspx


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Re: Government to raise electricity and petrol prices next m

Post by Chocolate Eclair »

92 Octane will be 2.4le on average then, seems ok to me and it will also help control the motorcycle and traffic problems. Really the control of traffic will not see too much change until petrol gets to 5le per litre.

I presume building material prices will rocket and that may help control all the c--p that is going up and making Luxor look likie a building site rather than a holiday place.

This is just the start, the only way to get Egypt going again is by raising taxes, and if income tax cannot be guarenteed it has to be something else. Next I foresee property tax, and land tax.

The Electric Supplier cannot keep up with things as they are, so when electric goes up I suppose you will find more and more illegal connections.
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Re: Government to raise electricity and petrol prices next m

Post by Chocolate Eclair »

So Petrol/Diesel prices went up yesterday, after an hour lecture by my taxi driver and how much they had gone up by, I :up put to him the following questions

A) How do you expect the government to raise money to build the Country back up again?
His answer was surely not during Ramadan
B) How do you expect a country to support its people living in poverty
His answer was the y have done for years now
C) If there is no money to do this where will the government get its money
His answer borrow it from our nieghbours.
D) Why do you answer like that?
His answer because there are no tourists we have no money, why can't they wait until the 10th month when the tourists will come back.
E) How are the tourists going to get to Luxor there are not many flights coming in, and the main tour operator TUI has stopped flights from Manchester
His answer They may fly from other places to Luxor.

I wonder if this is the norm on this, because if it is there are a lot of people going to be dissapointed.

I said to him fuel prices will effect a lot of things, such has food that has to be transported by road, the price will rise, he said why should it, food has been transported to Luxor for years.

I then said that service vehicles have put their charges up because of the rise in fuel prices to cover their costs, by that time we had arrived home and he said that will be 20le, I said but it should oly be 15le, he said I have to charge more now because fuel has doubled in price. I talked that one up!!! :lol: :lol: :lol:
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Re: Government to raise electricity and petrol prices next m

Post by newcastle »

Chocolate Eclair wrote:So Petrol/Diesel prices went up yesterday, after an hour lecture by my taxi driver and how much they had gone up by, I :up put to him the following questions

A) How do you expect the government to raise money to build the Country back up again?
His answer was surely not during Ramadan
B) How do you expect a country to support its people living in poverty
His answer was the y have done for years now
C) If there is no money to do this where will the government get its money
His answer borrow it from our nieghbours.
D) Why do you answer like that?
His answer because there are no tourists we have no money, why can't they wait until the 10th month when the tourists will come back.
E) How are the tourists going to get to Luxor there are not many flights coming in, and the main tour operator TUI has stopped flights from Manchester
His answer They may fly from other places to Luxor.

I wonder if this is the norm on this, because if it is there are a lot of people going to be dissapointed.

I said to him fuel prices will effect a lot of things, such has food that has to be transported by road, the price will rise, he said why should it, food has been transported to Luxor for years.

I then said that service vehicles have put their charges up because of the rise in fuel prices to cover their costs, by that time we had arrived home and he said that will be 20le, I said but it should oly be 15le, he said I have to charge more now because fuel has doubled in price. I talked that one up!!! :lol: :lol: :lol:
This would be quite amusing if it wasn't for the fact that CE's taxi driver's thinking is all too common in the "idiocracy" of Egypt today :(
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