Egypt to Lift Fuel Subsidies in 3 Years

Egypt to Lift Fuel Subsidies in 3 YearsEgypt to Lift Fuel Subsidies in 3 Years

Egypt plans to lift fuel subsidies within three years and is aiming to increase fuel prices to 65% of their actual cost during the 2016-17 fiscal year, two government sources told Reuters on Tuesday. Egypt, which is struggling to revive its economy after an uprising in 2011 shook investor confidence and drove tourists and foreign investors away, has been trying to cut its spending on subsidies that eat into its state budget. In April, government officials said there was a plan to reduce spending on fuel subsidies by nearly 43% in the 2016-17 budget. Egypt, a minor oil producer with an output of around 500,000 barrels per day, is following in the footsteps of Middle East's Arab countries that have liberalized fuel prices in recent months after posting multibillion dollar budget deficits in 2015 following a slump in crude prices.