ｘ
Egypt's cabinet announces new increase in price of subsidised energy ht
tp://english.ahram.org.eg/News/271715.aspx @ahramonlineさんから
Ahram Online , Thursday 29 Jun 2017
Egypt’s cabinet announced on Thursday a cut in energy subsidies, effective immediately, resulting in an increase in fuel prices.
The price of 80-octane gasoline has increased from EGP 2.35 per litre to EGP 3.65.
The price of 92-octane gasoline has been raised from EGP 3.50 to EGP 5.
The price of gas cylinders has doubled from EGP 15 to EGP 30.
Prime Minister Sherif Ismail said on Thursday that the implementation of economic reform measures can no longer be delayed.
"The cost of fuel subsidies approaches EGP 150 billion, a cost the state cannot bear," Ismail said.
Ismail said that the cuts in energy subsidies will free up funds that will be redirected towards measures that would protect low-income citizens.
"Mostly there has been no justice in the distribution of subsidies. What we are doing now is correcting the allocation of subsidies as part of the country's economic reform programme," Ismail said.
The move comes as part of the government's five-year plan to gradually scrap its fuel subsidy bill from the state budget. The goal is to decrease subsidies from EGP 145 billion this fiscal year – which ends in June – to EGP 110 billion in the 2017/18 fiscal year.
Fuel subsidy cuts were part of an economic reform package adopted in July 2014 that aimed to ease the country's growing budget deficit.
The first increase of fuel prices came in November, shortly following the Central Bank of Egypt freely floated the pound.
Egypt will hike household electricity prices by up to 40 percent this fiscal year, but will keep energy subsidies in place for three years longer phasing them out completely by the end of the 2021-22, said Electricity Minister Mohamed Shaker in a news conference Thursday.
The announced hikes range between 18-42 percent, depending on consumption levels, and will be applied starting August, Shaker said during the conference announcing the new electricity prices.
“Owing to conditions related to the big increase in the exchange rate, we have extended the period for subsidies by three more years,” he said.
The slashing of subsidies is a reform measure, part of the three-year $12 billion International Monetary Fund loan agreement, that Egypt hopes to pull back foreign investors.
According to the new price hike, households consuming 0-50 KW will be charged LE 0.13 instead of LE 0.11, an increase of 18 percent. Consumers of 51-100 KW will pay an extra 3 piasters at LE 0.22, instead of LE 0.19, marking a 15 percent increase.
The third tranche witnessing increase is for Egyptians consuming from 0 to 200 KW. They will be charged LE 0.27, up from LE 0.21, an increase of 25.5 percent.
The fourth tranche for consumers using 201 to 350 KW will be charged at LE 0.55, up from 0.42, a 30 percent increase. Users between 351 to 650 KW will be charged LE 0.75, up from LE 0.55, marking a 37 percent increase.
Related Stories
Following two waves of fuel hikes, Egypt’s middle-class succumb to austerity
Customers in high consumption tiers using 651 to 1000 KW will pay LE 125, an increase of 35 percent, compared to a previous LE 0.95. The highest consumption tier from zero to more than one thousand kilowatts will be charged LE 1.35 instead of LE 0.95 piasters, marking the highest increase of 42 percent.
Shaker explained in the conference that profit generated from the highest-volume customers will be used to partially cover the subsidy for the lowest consumption bracket.
Egypt’s heavy dependence on imports has been hit by soaring inflation since it floated its currency in November, allowing it to roughly halve in value. Prices are still expected to rise following hikes to the prices of electricity and fuel.
Egypt spent LE 64 billion on electricity subsidies during the 2016-17 fiscal year ending in June, higher than the 30 billion pounds expected in the budget as a result of the November currency float, Shaker said, adding that the extension was due to the weak local currency following the country’s decision to float the Egyptian pound in November.
The price hikes will cut subsidy spending to LE 52.7 billion in the current fiscal year and then to 43.4 billion pounds in the 2018-19 fiscal year, Shaker added.
Egypt raises metro ticket prices by another 100 percent ht
tp://ara.tv/w75xg @AlArabiya_Engさんから
ReutersSunday, 9 July 2017 Text size A A A
Egyptian Transport Minister Hesham Arafat said his country would raise the price of metro tickets in Cairo to millions of passengers by up to 100 percent by 2018.
Arafat said in an interview with local newspaper Al Masry Al Youm that the prices of tickets will be between 2-4 pounds, depending on the number of stations used by the passenger and that he expects the new prices to come into effect in early 2018.
The news comes just months after Egypt raised the price of tickets by 100 percent to LE 2 per passenger.
The announcement of the new hike in prices comes a few days after the government raised the prices of all petroleum and electricity materials, and raised the fees for a number of services.
Last Update: Sunday, 9 July 2017 KSA 17:31 - GMT 14:31
The country’s Consumer Price Index (CPI) continued to decline in June, registering 0.8 percent, compared to 1.6 percent in May and 1.8 percent in April
Ahram Online , Monday 10 Jul 2017
Egypt’s annual headline inflation rate registered 30.9 percent in June, showing no change on May, state statistics body CAPMAS said in a statement on Monday.
However, the country’s Consumer Price Index (CPI) continued to decline in June, registering 0.8 percent, compared to 1.6 percent in May and 1.8 percent in April.
CAPMAS said that food and beverage prices had increased by 40.8 percent year-on-year, making them the highest contributors to this month’s inflation rate.
Cooking oil increased by 58.2 percent year-on-year, seafood increased by 55.1 percent, while sugar and sugar-related products such as jam increased by 56.4 percent.
Gold, meanwhile, rose by 67.6 percent over the past year.
In November, the Central Bank of Egypt floated the Egyptian pound in an attempt to stabilize an ongoing loss in its value. The move saw the currency fall to EGP 18 to the dollar from an official rate of EGP 8.8, although it had been trading at over EGP 18 on the black market prior to the floatation.
Egypt, which relies heavily on food imports, has been suffering from an ailing economy and an acute foreign-currency crisis since the 2011 uprising that overthrew long-time president Hosni Mubarak.
The decision to float the Egyptian pound was part of an economic reform programme begun in 2014. The programme also cut subsidies and imposed new taxes such as the value-added tax, in an effort to reach a higher growth rate and reduce the budget deficit to 9.1 percent of gross domestic product in the 2017/18 fiscal year.
Ayat Al Tawy , Wednesday 12 Jul 2017
New "high-quality" buses similar to those seen on the streets of Europe have been put into service in Cairo in a bid to offer a possible alternative for private car owners to help ease increasing congestion in the traffic-choked capital, a transport official said.
Ten air-conditioned mini buses were put into service last week and 30 more will be operational on 1 August, the head of Egypt's General Transport Authority Rizk Ali told Ahram Online on Wednesday.
The 40 vehicles, which are part of private and state projects to provide hundreds of these buses in the next few years, will run across four lines serving areas including Shubra, Cairo International Airport, downtown's Ramses, Heliopolis and Obour City.
Egypt’s public buses are notorious for being poorly maintained and overcrowded, and are rarely used by well-off Egyptians. This has resulted in an increasing number of private cars on the streets, which causes congestion throughout the day in a capital of some 22.8 million people.
There are 2.3 million licensed private cars in Cairo, according to data released last month by state-run statistics body CAPMAS.
The new buses are fitted with a number of high-tech features including free Wi-Fi, USB sockets for passengers to charge their phones, CCTV cameras and digital displays showing upcoming stops, and entertainment screens.
More importantly, the buses will offer the use of pre-paid smart cards.
Tickets for the new 26-seater buses cost EGP 5, as opposed to the EGP 1 and EGP 2 tickets for regular public buses.
The Transport Authority will merely oversee operation of the vehicles, which are owned by the Egyptian Advanced Company for Public Transportation; 70 percent of which is owned by Emirates National Group.
The new buses are part of the company's EGP 1 billion plan to bring a total of 180 buses and mini buses into operation along 18 lines across Cairo in its first phase, the company said in a statement reported by local media on Wednesday.
The vehicles will be put into service gradually till June 2018, but Ali believes the plan could take longer, given a delay in running the first batch of 10 buses.
"We will supervise everything about the service, the Wi-Fi connection, the air-conditioning, etc. It would not be acceptable for passengers to pay EGP 5 and after one month find all these functions out of service," Ali told Ahram Online.
The authority plans to impose a strict system of regular maintenance on the vehicles, where a bus with a non-functioning feature will be suspended, Ali added.
In addition to the 180 privately owned buses, Ali said the authority plans to bring into operation over 160 more European-style buses with the same features.
These include 13 double-deckers that will go into operation in Cairo before the end of the year and 150 mini buses to be brought into service gradually over the first half of 2018.
The authority is also considering financial offers for its plan to run 300 natural gas vehicles in the capital.
"We aim to offer services that will eventually reduce energy consumption, air pollution, congestion and the impact on global warming."
Last month, the government hiked fuel prices by up to 50 percent, a sharp rise and further obstacle for many Egyptians struggling with soaring living costs.
Eastern Tobacco Company increased the prices of 3 categories of cigarettes from an added 50 piasters up to LE2.25, as of Wednesday.
The price of Cleopatra King Size rose from LE10.5 to LE11.5, Cleopatra Queen from LE12 to LE12.5, and Cleopatra Super from LE12.75 to LE15.
The company said in a statement Wednesday that the increase in prices comes in accordance with the provisions of the Value Added Tax Law No. 67 of 2016.
Abdel Moneim Matar, adviser to the Minister of Finance, denied in a statement to Al-Masry Al-Youm that the increase is not related to the application of the VAT law. He said the one percent increase in the VAT was applied in the budget for the current fiscal year.
The Ministry of Finance has informed the company that it targets getting LE52 billion from the company’s sales in this year’s budget, to help bridge the deficit gap resulting from the huge increases in expenses.
The increase in the prices of cigarettes will consequently lead to an increase in tax collected from the company, Matar pointed out.
He attributed the increase in the prices of some types of cigarettes to the price policy of Eastern Tobacco Company, due to increase in the cost of raw materials and production elements, and not the VAT.
“The company should notify the Tax Authority of the new price because it requires higher tax rates upon the new prices,” Matar mentioned.
The Tax Authority described Eastern Tobacco Company’s decision as a “single decision” issued without coordination with the Tax Authority, contrary to what used to happen in the past when the company coordinated with the Authority before raising prices.
UAE-based cab hailing company Careem raised their fares on Monday in Egypt to cope with the recent hike in fuel prices, according to a statement by the company emailed to Ahram Online.
Head of Careem Egypt Operations and Vice President of Careem Care Ramy Kato said in the statement that “Careem works carefully to avoid putting additional burdens on its drivers while maintaining quality standards of our customers.”
The statement said that the updated fare differs from one city to another.
The company currently operates in several areas including Cairo, Alexandria, Mansoura, Damanhour, Sharqiya, as well as the Red Sea’s El-Gouna and the Mediterranean’s North Coast.
For customers in Cairo, a “value ride” has a starting fare of EGP 5.5, with EGP 2.21 per km and a waiting charge of EGP 46 per hour, while Alexandria has a set starting fare of EGP 6.5, with EGP 2.20 per km and a waiting charge of EGP 36 per hour.
“The company has temporarily suspended the peak factor feature for one week, from 13 to 20 July, and will bear the cost of all price differences throughout this period,” Kato said, adding that the welfare of customers is a “top priority” for Careem.
It is unclear if Careem’s rival, San Francisco-based Uber, will follow suit and increase fares.
The Egyptian government recently cut fuel subsidies for the second time in less than one year.
In November 2016, Egypt’s petroleum ministry announced fuel subsidy cuts as part of its fiscal reform programme, after which Careem increased drivers' wages to cope with the fuel price hikes.
The San Francisco-based ride-hailing company Uber increased their base fare prices in Egypt to start at LE6, with the aim of balancing the effects of increased fuel prices implemented earlier this month, Abdel-Latif Waked, Uber Egypt’s general manager, said on Wednesday.
For an average UberX ride, the base fare has been raised from LE5 to LE6 and the LE1.5 per kilometer has been raised to LE1.85.
“The aim of the fare increase is to maintain a sustainable living for Uber drivers while ensuring that our riders continue to move around their cities with affordable, efficient and safe rides,” the company said in a statement.
As for UberSELECT rides, the base fare prices are at LE7 and the price per kilometer is LE2.
The minimum fare was set at EGP10 and EGP15 for the standard and premium services, respectively.
Uber says that its average UberX ride in Cairo remains more affordable than other ride-hailing apps, despite the new price increase.
Uber is currently operating in Cairo, Alexandria and Mansoura, in addition to providing services at North Coast resort areas throughout the summer.
Uber’s rival, the Dubai based ride-hailing app Careem, also increased their fares in Egypt on Monday to start at LE5.5 and charge LE2.21 per kilometer.
The price adjustment, following the fuel price hikes, aims to ease additional burdens on Careem’s drivers, while ensuring the quality of service provided to the riders, Rami Kato, Careem’s chief operating officer in Egypt said.
The prices of tickets for public buses in Cairo increased on Friday by 50 piastres, state news agency MENA reported.
One-pound tickets will now be sold for EGP 1.5, while EGP 2 tickets will increase to EGP 2.5.
The hike in prices will allow the Cairo Public Transport Authority to develop and enhance its services, especially following the increase in fuel prices, the head of the authority, Rizk Ali, told MENA.
Egypt’s cabinet announced a cut in energy subsidies in June, with the price of 80-octane gasoline increasing from EGP 2.35 per litre to EGP 3.65, and the price of 92-octane gasoline increasing from EGP 3.50 to EGP 5.
In March, the price of a standard metro-ticket doubled from EGP 1 to EGP 2.
