Egyptian Chronicles: Happy 30 June Dear Egyptians : Less energy subsidies , more fuel prices

Thursday, June 29, 2017

Happy 30 June Dear Egyptians : Less energy subsidies , more fuel prices

Earlier Thursday, Egyptians woke up to the news that government announced cuts in the energy subsidies effective immediately, which means that there will be an increase in the fuel prices and subsequently there will be an increase in the price of everything.

The price of 80-octane gasoline has increased from LE 2.35 per Litre to LE 3.65 which means buses, microbuses, taxis and even tuktuk's fare will increase.
Fuel station
At the fuel state, an old taxi driver and a sign with the new prices
in Cairo, Egypt on Thursday "Photo: Reuters"

The prices of food supplies as well any things use that trucks for transportation will increase as well.

Already, vegetables' prices are expected to increase by 40%.
A simple salad will cost the Egyptian family nearly LE 50 !!

The price of 92-Octane gasoline has increased from LE 3.50 per Litre to LE 5 in another blow to the Middle class that own cars.

The price of gas cylinders has increased from LE 15 to LE 30.
A Huge number of Egyptian especially the poor working classes in the governorates will be affected with that increase.
The number of Egyptians who got access to natural gas in homes is still small compared to the Egyptians who still use the gas cylinders, especially in the countryside.

Experts say that the inflation will increase after this new wave of high prices that can reach to 35%.
In May, the inflation rate hit three-decade high with 32.9 % but it dropped in April but it fell to 30.9% in May.

This is the third major increase in the prices of fuel in Egypt since President Abdel Fattah El-Sisi became the head of state.

The first time was in July 2014 while the second was in November 2016 following the Center Bank of Egypt "CBE" to devaluate the Egyptian pound aka to float the price of Egyptian pound free.

We knew that this will be coming because the start of the new official fiscal year 2017/2018 is 1 July in Egypt.
Already cutting or rather lifting the subsidies is part of the Egyptian government's 2014 five-year economic reforms plan approved and supported by the International Monetary Fund "IMF".

When I search back in the news archives, I find that the original plan was speaking about lifting the subsidies in 2019 and not in 2017.

Just from 24 hours ago, Minister of Petroleum Tarek El-Mulla told journalists that there was no firm date for the fuel subsidy but it is going to happen sooner.

From what I see on the social media as well the people I have met and spoken with especially from the low working class and Middle class that people are angry and frustrated.

Ironically, Egypt's PM Sherif Ismail claims that the people are satisfied with those energy subsidies cut adding that they were 15-years late.

It is true that IMF was trying to force Mubarak to scrap the subsidies but he was much wiser and knew doing such thing would open the doors of hell for real in Egypt.
I thought it was going to happen next week honestly after El-Mulla's statement.
I thought that the regime would wait for a while till the people forgot Tiran and Sanafir isles scandal to shock them with the subsidies cut.
Just an hour before the last Iftar of Ramadan this year on Saturday, President Sisi ratified the April 2016 Egyptian-Saudi maritime demarcation that hands the two Egyptian Red Sea islands of Tiran and Sanafir to Saudi Arabia with no respect what so ever to the court rulings over those islands.
One hell of a week indeed !!!

This is more than ridiculous for real !!
The regime always chooses perfect timing for its shocking unpopular wrong decisions in the holidays and weekends to make sure that people won't move a muscle !!
As usual, the mainstream media is putting all the blame on the Prime Minister and the ministers of the cabinet instead of blaming the President.
The president will address the public on Friday on the occasion of 30 June and the ouster of Mohamed Morsi.

Instead of speaking about the new increase in fuel prices and subsidies cuts as well their effect on the daily life of Egyptians, the TV channels got that "30 June Revolution" anniversary logo while broadcasting their normal program as if nothing has changed.

This will be a long hot summer indeed.
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1 comment :

  1. May God help the Egyptians
    Do you expect people will Revolt.

    ReplyDelete

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