Back to the complete issue
Sunday, 21 August 2016

Fuel subsidy cuts, metro ticket price hikes coming in “weeks”

The government is planning on raising prices of Cairo Metro tickets and will raise the price of some fuel products before the first tranche of the IMF loan is received, a government source tells Al Shorouk, suggesting a 6-8 week timeline for the cuts. The source added that diesel prices won’t rise (directly contradicting another report in the same newspaper last week). LPG and butane will rise in price, as will natural gas for industry, the source says. The news comes as the head of the House Transportation Committee said over the weekend he accepts in principle raising the price of metro tickets, Al Mal reports.

As grandstanding goes, this doesn’t even get a passing grade: MP Amin Masoud convinced some friend at Al Shoroukto give him some ink to advance the notion that a draft law that “is being drafted” (never trust the passive voice, folks) will ban anyone making EGP 10k a month from benefiting from subsidies — and would raise prices 10% for anyone earning more than EGP 15k monthly. Setting aside questions on implementation, Masoud plans to ask House Speaker Ali Abdel Aal to “request a census on national income levels” when the House returns from its upcoming recess. (CAPMAS performs its census once every 10 years, and is already scheduled to conduct a census this year.) Don’t take the story seriously, but as a harbinger of the debate to come. It’s going to get messy, folks.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.