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Approval of fuel system's 3rd phase after distributing cards to consumers - Daily News Egypt

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Approval of fuel system’s 3rd phase after distributing cards to consumers

Smart cards currently monitoring distribution of petroleum products in the local market

The government intends to apply the third phase of the distribution of petroleum products through the smart cards system after making sure all consumer categories obtained their cards. The phase stipulates that obtaining fuel will only be possible via cards.

A source at the Ministry of Petroleum told Daily News Egypt that the implementation of the second phase of fuel distribution system via smart cards allows those who did not obtain the card so far to be supplied with fuel using the cards at gas stations.

He added that fuel cards are currently available in traffic deparments and can be obtained by providing the car’s licence.

The second phase of the system is considered a tool to control the distribution of petroleum products from refineries down to the final consumer by adjusting the market, controlling existing supply, and eliminating the informal market.

The source pointed out that activating the entire second phase of the system around the country will occur after making sure that car owners obtained their smart cards, estimated at 5 million cars.

He said that the problems that tuk-tuks had in obtaining gasoline via smart cards are now resolved, and that their owners can obtain their own cards from the traffic department, while agricultural tractor cards are currently following the card system of the individual gas station until the agricultural holdings’ cards can be finalised.

The first phase of the system had been applied in 2013. It included the transport of petroleum products from warehouses to gas stations, while the second phase is concerned with the distribution of petroleum products, starting with gas stations.

The source added that the petroleum products distribution system is designed to create an accurate and actual database of petroleum products consumption in order to determine the average size of the actual consumption for each transportation category. This is a prelude to the implementation of the fourth phase of the system, which will include determining subsidy amounts on cards and a fair price for petroleum products beyond the quota’s allotted amount.

The monthly consumption of petroleum products and natural gas average in the domestic market is estimated at 6.5m tonnes, as 4.2m tonnes are supplied by various production concession areas.

Egypt imports 2.3m tonnes of petroleum products, including oil, diesel, LPG, solar, and natural gas per month, to provide for the local market’s needs.

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