Egypt hikes gas prices by up to 75 pct in IMF-backed austerity plan

A worker holds up a fuel pump nozzle after filling up the tank of a car. (Reuters)
Updated 21 July 2018
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Egypt hikes gas prices by up to 75 pct in IMF-backed austerity plan

  • The increases follow hikes to fuel, electricity and public transport prices

CAIRO: Egypt said on Saturday it was raising the price of natural gas for home and commercial use by up to 75 percent, the latest move in an IMF-backed austerity program that has left many Egyptians struggling to make ends meet.
The increases follow hikes to fuel, electricity and public transport prices that are part of a $12 billion IMF loan program signed in 2016 that aims to lure back investors and lift the economy battered by political turmoil since 2011.
The government statement published in the Official Gazette said that, effective Aug. 1, the price for consuming up to 30 cubic meters of gas had been set at 0.175 Egyptian pounds ($0.0098) per cubic meter, up from 0.100 pounds.
The price for consuming between 30 and 60 cubic meters was set at 0.250 pounds, up from 0.175 pounds, while consumption of more than 60 cubic meters was set at 0.300 pounds from 0.225 pounds.
The statement did not specify the timeframes over which the consumption levels apply. But officials said they covered the usual billing period, which is monthly in Egypt.
Price hikes under the three-year IMF program helped drive up Egypt’s annual urban consumer inflation rate to 14.4 percent in June. Analysts said the impact of cutting energy subsidies was feeding through to the broader economy faster than expected.

($1 = 17.8500 Egyptian pounds)


Saudi energy minister compares electric vehicle “hype” to peak oil misconceptions

Updated 40 sec ago
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Saudi energy minister compares electric vehicle “hype” to peak oil misconceptions

Arab News LONDON: Saudi Energy Minister Khalid Al-Falih on Monday questioned what he described as the “hype” of the electric vehicle market and compared it to past misconceptions around the theory of peak oil.
He told the CERAWeek energy gathering by IHS Markit in New Delhi that petrol and diesel engines would co-exist with emerging electric and hydrogen fuel cell technologies for much longer than widely expected.
Miscalculations around the pace of electrification could create “serious” risks around global energy security, he said.
“Conventional vehicles today, despite all the hype, represent 99.8 percent of the global vehicle fleet. That means electric vehicles with 0.2 percent of the fleet, only substitute about 30,000 barrels per day of oil equivalent of a total global oil demand of about 100 million barrels.
“Even if those numbers increase by a factor of 100 over the next couple of decades, they would still remain negligible in the global energy mix.”
He said: “History tells us that orderly energy transformations are a complex phenomenon involving generational time frames as opposed to quick switches that could lead to costly setbacks.”
In another broadside aimed at electric vehicles, the Saudi energy minister highlighted past misconceptions about global energy demand growth — and specifically the notion of “peak oil.”
“I remember thought leaders within the industry telling us that oil demand will peak at 95 million barrels per day. Had we listened to them and not invested . . . imagine the tight spot we would be in today.”
“Let’s also remember that in many parts of the world, roughly three fourths of the electricity, which would also power electric vehicles, is currently generated by coal, including here in India. So you could think of any electric vehicle running in the streets of Delhi as essentially being a coal-powered automobile.”
“When it comes to renewables, the fundamental challenge of battery storage remains unresolved — a factor that is essential to the intermittency issue impacting wind and solar power. Therefore the more realistic narrative and assessment is that electric vehicles and renewables will continue to make technological and economic progress and achieve greater market penetration — but at a relatively gradual rate and as a result, conventional energy will be with us for a long, long time to come.”