By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Madbouly discusses ways to boost metallurgical industries 
    Madbouly discusses ways to boost metallurgical industries 
    September 25, 2023
    FRA to launch futures contracts trading in derivatives market
    FRA to launch futures contracts trading in derivatives market
    September 25, 2023
    We work with Tax Authority to control prices, support consumers: Philip Morris Misr
    We work with Tax Authority to control prices, support consumers: Philip Morris Misr
    September 25, 2023
    Mahmoud Mohieldin says global finance reform needed for just green transitions
    Arab region has great opportunities to harness digitalisation, AI in making progress in implementing climate action: Mahmoud Mohieldin
    September 24, 2023
    FRA to launch voluntary carbon market with 6 local projects
    FRA to launch voluntary carbon market with 6 local projects
    September 24, 2023
  • Politics
    PoliticsShow More
    Defence Minister meets NATO Military Committee chief
    Defence Minister meets NATO Military Committee chief
    September 25, 2023
    Egypt, Jordan, and Iraq discuss economic, political cooperation in New York
    Egypt, Jordan, and Iraq discuss economic, political cooperation in New York
    September 24, 2023
    Al-Sisi highlights opportunities for mutual benefit with China
    Al-Sisi highlights opportunities for mutual benefit with China
    September 24, 2023
    Egypt, India affirm their strategic partnership, discuss regional issues
    Egypt, India affirm their strategic partnership, discuss regional issues
    September 24, 2023
    Pope Francis denounces ‘invasion’ rhetoric on migrants
    Pope Francis denounces ‘invasion’ rhetoric on migrants
    September 24, 2023
  • Interviews
    InterviewsShow More
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    September 18, 2023
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    September 14, 2023
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    September 12, 2023
    India welcomes Egypt's BRICS membership: Boosting trade, investment, and access to strategic commodities
    India welcomes Egypt’s BRICS membership: Boosting trade, investment, and access to strategic commodities
    September 11, 2023
    The box office is not a measure of success: Basma Hassan
    The box office is not a measure of success: Basma
    September 6, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: The diesel crisis: Petroleum minister’s words versus reality
Share
Notification
Latest News
Madbouly discusses ways to boost metallurgical industries 
Madbouly discusses ways to boost metallurgical industries 
Business
FRA to launch futures contracts trading in derivatives market
FRA to launch futures contracts trading in derivatives market
Business
Defence Minister meets NATO Military Committee chief
Defence Minister meets NATO Military Committee chief
Egypt Politics
We work with Tax Authority to control prices, support consumers: Philip Morris Misr
We work with Tax Authority to control prices, support consumers: Philip Morris Misr
Business
Mahmoud Mohieldin says global finance reform needed for just green transitions
Arab region has great opportunities to harness digitalisation, AI in making progress in implementing climate action: Mahmoud Mohieldin
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Economy > The diesel crisis: Petroleum minister’s words versus reality
BusinessEconomy

The diesel crisis: Petroleum minister’s words versus reality

Daily News Egypt
Last updated: 2013/02/12 at 5:57 PM
By Daily News Egypt 5 Min Read
Share
Osama Kamal former minister of petroleum (DNE Photo\File)
SHARE
Egypt's Petroleum Minister Osama Kamal said that Egypt planned on instituting its smart card programme in order to help better distribute petroleum resources between the months of April and July (Photo - DNE)
Egypt’s Petroleum Minister Osama Kamal said that Egypt planned on instituting its smart card programme in order to help better distribute petroleum resources between the months of April and July (Photo – DNE)

Osama Kamal, Egypt’s minister of petroleum, said Tuesday that Egypt currently finds itself in the midst of a diesel crisis, adding however that this was a result of high levels of smuggling as opposed to a shortage in supplies, and that Egypt was distributing 35,000 tonnes of diesel each day at an estimated cost of over $35m.

In statements made Tuesday during a yearly conference held for petroleum interests from various Arab countries, Kamal stated that Egypt planned on instituting its smart card programme in order to help better distribute petroleum resources between the months of April and July.

The government has attempted to decrease its funding for fuel subsidies which total one-fifth of Egypt’s GDP, however worker strikes have prevented such policies from being implemented.

Government funded petroleum subsidies for the first half of the 2012-2013 fiscal year totaled EGP 55bn ($8bn), with costs expected to reach EGP 120bn by year’s end.

Repeated fuel shortages have stirred up anger amongst Egyptian drivers and caused a number of complications for Egypt’s agricultural and industrial sectors.

He added saying that, “There does indeed exist a diesel crisis within Egypt that we cannot ignore, however it is not a diesel crisis per say as much as it a problem with distribution. We distribute 35,000 tons of diesel a day at a cost of nearly $35bn.”

He added that the Ministry of Petroleum planned to address the crisis by re-routing fuel shipments headed for stations known to engage in smuggling to other stations that do not do so.

Dakar Abdellah, member of the board of directors for the Egyptian Federation for Construction and Building Contractors (EFCBC), and a member of the Construction Committee for the Egyptian Businessmen’s Association (EBA), said that he did not agree with the minister’s statements, which he said were not received well by the country’s contracting sector.

He added that all in Egypt were aware of the extent to which the diesel crisis had affected all parts of the country and put a stop to a number of commercial and development projects, in particular with regards to road work being carried out inside the country.

Abdellah went on to describe statements made by officials from the petroleum ministry regarding the crisis as delusional and unconvincing.

With regards to the price of the dollar in Egyptian pound and its effect on Egyptian fuel consumption he said, “the decrease in the price of the pound has effected all aspects of the Egyptian economy, however with regards to petroleum, we continue to export at the same rate that we import, and in this sense we have benefitted from the rise in the price of the dollar”.

Since 31 December, the price of the Egyptian pound has decreased 8% in relation to the dollar. This has happened as clashes and instability continue to grip Egypt, stalling Egypt’s acceptance of its long awaited pending IMF loan.

Egypt has also seen a decrease in the level of its foreign currency reserves which have reached $13.6bn, less than what is needed to cover the cost of imports over the next three months. This comes as the amount of dollars in circulation in Egypt has decreased markedly, as investors and tourists have become hesitant to travel to and do business in the country.

However Kamal commented Tuesday saying: “We still possess the necessary amount of financial resources needed to continue importing petroleum products.”

You Might Also Like

Madbouly discusses ways to boost metallurgical industries 

FRA to launch futures contracts trading in derivatives market

We work with Tax Authority to control prices, support consumers: Philip Morris Misr

Arab region has great opportunities to harness digitalisation, AI in making progress in implementing climate action: Mahmoud Mohieldin

FRA to launch voluntary carbon market with 6 local projects

TAGGED: Diesel crisis, EBA, EFCBC, Egyptian Federation for Construction and Building Contractors, egyptian pound, exchange rate, Minister of Petroleum, Ministry of Petroleum, osama kamal, smuggling
Share this Article
Facebook Twitter Email Print
Previous Article The lawyers requested mandating a tripartite committee to reevaluate El-Gendy's medical report, said Mohamed Abdel Aziz, one of El-Gendy's lawyers. (Photo:Public Domain) EOHR calls for investigation into El-Gendy’s death
Next Article Some people criticised Central Bank policies after the 25 January Revolution, and that it had been helped by Egyptian banks to help businessmen to smuggle their money deposited in banks abroad (File Photo) (AFP Photo) Central Bank dollar supply continues to shrink
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Madbouly discusses ways to boost metallurgical industries 
Madbouly discusses ways to boost metallurgical industries 
Business
FRA to launch futures contracts trading in derivatives market
FRA to launch futures contracts trading in derivatives market
Business
Defence Minister meets NATO Military Committee chief
Defence Minister meets NATO Military Committee chief
Egypt Politics
We work with Tax Authority to control prices, support consumers: Philip Morris Misr
We work with Tax Authority to control prices, support consumers: Philip Morris Misr
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?