Why Egypt Is Cutting Fuel Subsidies By $2.64B

While Egyptian citizens are not looking forward to increased costs regarding fuel and transportation, the country’s government is gearing up to cut fuel subsidies, CCTV Africa reported. The $2.64 billion budget cut is said to be implemented fully over the span of five years. The government’s aim is to lower the 20 percent fuel expenditure although fuel contributes 6 percent to overall GDP.

“The government could make use of the situation by reducing subsidies,” Mohamed El Kholy, Masr Arabia News business editor told CCTV Africa. “The money could be used to buy gas, generate electricity and ease the budget deficit.”