Distribution of subsidies on petroleum products in the new budget

Abdel Qader Ramadan
2 Min Read

A financial statement from the new general budget for the fiscal year (FY) 2014/2015 states that diesel fuel makes up 44.8% of the total value subsidies on all petroleum products.

It also noted that petrol accounts for 20.1%, butane 19.1%, and diesel fuel 16%, and kerosene 0.1%. No allocations have been made for gas.

These subsidies result from the government’s sales of these products at prices below their actual cost.

The government decreased subsidies on petroleum products to EGP 100.3bn in the budget for the FY 2014-2015. This is compared with EGP 99.6bn in subsidies in the amended budget for the FY 2013-2014, which was an increase of EGP 656m from the year before.

This budget was to include reform measures that were not previously implemented to lift energy subsidies. The budget was also supposed to decrease by EGP30.1bn by the close of the FY 2013-2014, to reach a total value of EGP 130.4bn.

According to the financial statement for the new budget, the government aims to raise energy subsidies through the next 3 to 5 years. This is to “provide the necessary protection to the poor, low-income, and middle-class earners” through a gradual rise in prices, according to the statement.


Product Quantity

(thousands of tons)


(in EGP millions)

Sales Revenue

(in EGP millions)


(in EGP millions)

Percentage of total ratio

Butane 4,000 20,236 1,120 19,116 19.1%
Petrol 6,100 34,482 14,335 20,147 201.1%
Kerosene 15 79 26 53 0.1%
Diesel 13,000 70,024 25,120 44,904 44.8%
Heating oil 13,200 44,891 28,860 16,031 16%
Total   169,712 69,461 100,251 100.0%
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