Egypt’s oil and natural gas consumption is approximately $55 billion annually to meet the needs of the country’s citizens, explained Madbouly on Monday in a post-tour press conference
Prime Minister Mostafa Madbouly directed Ministers of Finance and Petroleum to begin paying back 20-25% of arrears owed by the petroleum ministry to foreign partners next week, speaking at the end of his tour of projects in Beheira and Alexandria.
These payments’ will be scheduled according to a specified agreement between the government and international partners.
Egypt’s oil and natural gas consumption is approximately $55 billion annually to meet the needs of the country’s citizens, explained Madbouly on Monday in a post-tour press conference.
The PM highlighted that Egypt was able to secure around $33 billion of the costs, using the local currency, through local production of petroleum products.
The remaining $22 billion are from the dues of the foreign partners who holds the concession and exploration rights in the Zohr field and other projects, and imported products.
The prime minister implied a possible fuel hike as the state aims to “restore balance” between production costs and end prices by the end of 2025.
Subsidizing fueling is against the state’s interest and goals, stressed Minister of Finance, Mohamed Maait, during the press conference.
The FinMin noted that reducing these subsidies will enable the state to distributed the funds towards improving health, education and social protection.
Egypt has created a strategy with clear targets to increase the country’s foreign reserves, boost its exports and reduce imports to fortify the economy against any impact from external economic shocks, the PM stressed during his speech.
