Egypt: Shortages Spark Tension Despite Government Assurances
|
|
|
|
Thursday, 19 January 2012 |
Reports of increasing prices and fuel shortages have stirred up unrest in Egypt for three consecutive days, despite Government assurance of stable supply and promises of no price hikes. The Oil Ministry issued a statement to the national media saying that 21.5m litres of petrol were being distributed daily, 33% more than normal demand dictates and that no plans were in train to raise subsidised fuel prices.
9m litres of the daily supply, the statement added, had been allocated to the Cairo governorate, and Government members blamed speculators for the reports of shortages. “What we are witnessing is an artificial crisis caused by rumours by some people who have an interest in making profit,” Planning and International Cooperation Minister Fayza Abul Naga (pictured) claimed to local media.
Speculation that the cost of fuel in Egypt may rise dramatically has arising since the country once again requested assistance from the International Monetary Fund. consumers are concerned that negotiations with the fund for a loan may lead to the scrapping of Egypt's fuel subsidy scheme, which currently sees petrol prices sell for roughly half their market value. Removing the scheme would help reduce a budget deficit that officially stands at roughly $24bn.
PetrolWorld 19012012
|
