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Thursday, 25 August 2016

No plans to raise fuel prices, source says

The flip-flop continues: The government has no intention of raising the price of fuel products in FY2016-17, a Finance Ministry source told Al Mal. The agreement with the IMF did not go beyond what was presented in the year’s budget, namely implementing the value-added tax and “moving” electricity prices. The source also refused to comment on how much of the cost of producing refined product is covered by the price at the pump, saying this issue is firmly within the Oil Ministry’s remit. An Oil Ministry spokesperson added that the plan to phase out fuel subsidies will be implemented gradually over five years, not by 2020, and will include measures to protect the most vulnerable households, according to Al Masry Al Youm. Both sources effectively denied a report by Reuters that the government was going to increase fuel prices in the current fiscal year with the target of removing the subsidy altogether by 2020.

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