Egypt has succeeded in cutting fuel subsidies, spending EGP 60bn (US$3.5bn) in the first nine months of the 2018-2019 financial year (July 2018-June 2019), i.e. over the July 2018-March 2019 period. This is 28% less than over the same period of 2017-2018.
As part of a reform programme led by the International Monetary Fund (IMF), the Egyptian government has decided to end subsidies on most fuels by mid-June 2019 . The country is committed to reaching full cost recovery by the end of 2018-2019 for all fuel products, except for liquefied petroleum gas (LPG) and fuel oil used in bakeries and for power generation, which will not be affected. The authorities have decided to opt for a phased approach to the planned introduction of fuel price indexation for all fuel products. Where electricity is concerned, the reform will continue as planned towards the objective of full elimination by 2020-2021.
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