Reforming the subsidized fuel system is a great success achieved in the energy sector, Petroleum Minister Tarek al-Mulla said Thursday.

“The state’s wealth was under the pressure of subsidies. Thus several problems took place,” he told Sada El Balad TV.

Among these problems was the selling of a product at a price under its actual cost, which did not yield any surplus, as well as the overconsumption, the minister pointed out.

The reform of subsidies achieved positive results, including the achievement of surplus that reached billions of pounds, he said. “The state spent 128 billion pounds in subsidies in 2016, but the bill costs 18 billion pounds now,” he pointed out.

On the fuel prices, the minister said that the prices are revised every three months in line with the market mechanisms.

He added that a limit of 10 percent was set for the increase in the fuel prices, noting that the fuel prices will be raised if the global price goes up.

The prices of gas for the industry sector decreased last year, and an increase was approved in November in line with the global prices, he said.

Coordination was made with the Federation of Egyptian Industries (FEI) and the parliament’s industry committee on the prices of gas, he said.

Source: State Information Service Egypt