Pics: Following subsidy cuts, Sisi calls on Egyptians to bear challenges



Wed, 13 Jun 2018 - 11:40 GMT


Wed, 13 Jun 2018 - 11:40 GMT

President Abdel Fatah al-Sisi (R) and former PM Sherif Ismail (L) during the Egyptian Family Iftar ceremony on June 12, 2018 – Press photo

President Abdel Fatah al-Sisi (R) and former PM Sherif Ismail (L) during the Egyptian Family Iftar ceremony on June 12, 2018 – Press photo

CAIRO – 13 June 2018: President Abdel Fatah al-Sisi called on Egyptian people to unite against economic challenges that Egypt witnesses, saying that Egyptians have to suffer in order for Egypt to be a developed country.

During the Egyptian Family Iftar ceremony held on Tuesday, President Sisi said that serious and hard work is the only way to achieve the state’s aspirations. Iftar is the meal Muslims eat to break their fast.

sisi iftar2
From left, former PM Sherif Ismail, President Abdel Fatah al-Sisi, newly appointed PM Mostafa Madbouly during the Egyptian Family Iftar ceremony on June 12, 2018 – Press photo

Concerning government subsidy, President Sisi said that they cost the state LE 332 billion ($18.6 billion) annually, explaining that this value results from the difference between the cost of the service and the price that citizens actually pay for them.

sisi iftar3
President Sisi attends Egyptian Family Iftar ceremony on June 12, 2018 – Press photo

During the ceremony, Sisi affirmed that he has pledged himself to take on the responsibility and not to postpone hard decisions that are essential for the economic reform for the next generations.

Sisi affirmed that the regulatory institutions have been endorsed, saying that the state would not tolerate violations and would firmly fight against corruption.

New hikes in electricity prices

Egyptian government announced Tuesday new cuts to its electricity subsidies, raising prices by not more than 26 percent in the 2018-2019 fiscal year beginning July, according to Electricity Minister Mohamed Shaker.

Shaker said electricity costs for factories would rise about 41.8 percent and for households 20.9 percent.

The minister affirmed that the new hikes save the country from potential losses that might reach LE 109 billion ($6.1 billion).

Egypt has committed to deep cuts to energy subsidies as part of a three-year $12 billion IMF loan programme it began in 2016.

Hikes in metro tickets prices

The government decided to increase the price of metro tickets after the underground subway system incurred financial losses worth millions of pounds, which had resulted in poor maintenance on the second and third lines, according to Ministry of Transportation.

In this regard, Minister of Transport Hisham Arafat said that hiking metro ticket prices is essential to finance and upgrade the infrastructure of the metro’s first line, which needs LE 30 billion ($1.68 billion) for renovation, and to implement the development plan for Cairo’s underground metro.

He added that it also aims to cover the losses of the underground, and despite the increase in ticket prices, the state still subsidizes the metro ticket and bears LE 9 ($0.5) of the actual price of each ticket, so that citizens can get access to any station for LE 7 ($0.4), while the fair value of the ticket is LE 16 ($0.9).

The price of metro tickets was doubled in March, 2017 for the first time during Sisi’s first term to become LE 2.

Fuel price hikes

Minister of Petroleum Tarek el-Molla announced in a press conference in June 2017, that new prices for natural gas piped into households and commercial sector will be applied starting from July, as part of the government's economic reforms.

In addition, an increase in fuel prices was applied as price of 80-octane gasoline soared from LE 1.60 ($0.08) to LE 3.65 per liter, while the 92-octane increased from LE 3.50 to LE 5.00 per liter.

Following fuel price hikes announcement, Giza governorate announced new transportation fares to cope with the recent increase.

The governorate said the white taxi's meters would start from LE 5 instead of LE 4 for a one kilometer journey, with each subsequent kilometer priced at LE 2, up 25 piasters from the previous rate of LE 1.75.

It also approved a new fare for micro-buses with an increase of 7 percent to 20 percent for long distances, and of 25 to 75 piasters for short distances, starting from today.

Additional reporting by Hanan Mohamed



Leave a Comment

Be Social