Cabinet increases earmarks for fuel subsidy program in FY2017-18 budget: The cabinet economic group decided on Monday to increase the amounts earmarked for fuel and electricity subsidies by EGP 85 bn in FY2017-18, according to a cabinet statement. Around EGP 145 bn (up from EGP 110 bn) will be allocated to fuel subsidies, while EGP 80 bn (up from EGP 30 bn) will be allocated to electricity. All in all, total subsidies spending will hit EGP 330 bn on subsidies in FY2017-18, Prime Minister Sherif Ismail

Could this mean that the government will postpone the July energy price hikes? Rumors had suggested that cabinet could postpone a hike to energy prices planned for July to avoid fueling inflation. Electricity Minister Mohamed Shaker had reaffirmed, however, that the hikes were a reality, as failing to raise prices could cost state coffers and additional EGP 60 bn. MPs had said last month that they plan to discuss the matter further with Oil Minister Tarek El Molla. Also: Cabinet has not yet made it clear when it plans hike water prices, said the chairman of the Holding Company for Water and Wastewater Mamdouh Raslan, Al Shorouk reports. MPs are also opposed to the water price hike.