Government to start liberalization of butane gas

Daily News Egypt Authors
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The Ministry of Social Solidarity will commence distribution of butane gas canisters through the ration card system in the governorate of Menufiya in fiscal year 2010/11, Al-Shorouk reported.

According to Beltone Financial’s daily market report, each family of three members gets one canister at the price of LE 4, effective July 2010.

If a family’s consumption is higher then it can buy the canister at the market-based price of LE 48.00, according to sources in the ministry.

“Butane gas is the energy product most subsidized by the government and mostly used by the low income class and higher income groups who reside in areas that are not linked to the national gas grid,” Beltone said.

“The liberalization of canister prices, for non-ration card holders, could have negative repercussions on inflation, when fully implemented on a national level, and could create a black market for the canisters while being partially implemented in some areas.”

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