Egypt has not applied the smart card system for subsidised fuel purchases that was expected to start on 15 June 2015, after the Egyptian president directed the government to consider postponing its application "to give the government more time to study sectors that are not covered by the new system".
The new system was aimed at reducing the subsidy burden on the public budget (estimated at 13% of government's spending in 2014-2015 fiscal year) and at reducing misuses of oil products. Under the new systems, consumers would have be able to buy only a limited amount of subsidised fuel per day and would have to pay market prices for their extra consumption. The smart card system was estimated to save EGP 36bn (US$4.7bn).
In July 2014, Egypt had cut subsidies by EGP 40bn (US$5.6bn) to EGP100bn over the 2014-2015 period, aiming to curb the expected budget deficit from 12% in the 2013-14 fiscal year to 10%. The subsidy reduction led to an increase in oil prices by up to 78%
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