CAIRO: Egypt will keep 95-octane petrol at 7.75 Egyptian pounds ($0.4485) per liter through the second quarter of 2019 as it links the cost to international fuel prices for the first time, the petroleum ministry said in a statement.
Egypt had committed to the indexation mechanism as part of reforms tied to a $12 billion International Monetary Fund program and designed to increase energy prices to match those on international markets.
A committee decided to hold 95-octane petrol’s price based on the Egyptian pound’s appreciation against the dollar and global prices of Brent crude, the ministry said.
“There has been an uptick in inflation and the government has just issued a decision to increase the minimum state salaries,” said Angus Blair, chief operating officer at Cairo-based investment bank Pharos Holding.
“It may have decided to defer any increase until inflation comes off a little further, as inflation is on a longer-term downtrend, and the state employees are paid the new salaries. I would now expect fuel price increases in July or August.”
As part of the IMF deal, Egypt has been pushing ahead with tough economic reforms that have strained the budgets of tens of millions of citizens.
They included the introduction of a value-added tax, a currency devaluation and deep cuts to energy subsidies that included a hike in petrol prices of up to 50 percent last June.
About $10 billion has now been disbursed under the deal, with a final tranche due after another review in June.
The petroleum minister had said in January that Egypt would implement the automatic price indexation mechanism on 95-octane petrol starting in April.
The IMF cited those promised changes in a statement last month, saying: “The authorities remain committed to reaching cost recovery for most fuel products by mid-2019 and implementing automatic fuel price indexation.” ($1 = 17.2800 Egyptian pounds)
Egypt holds price of 95-octane petrol through Q2 — ministry
Egypt holds price of 95-octane petrol through Q2 — ministry
- 95-octane petrol will remain at 7.75 Egyptian pounds ($0.4485) per liter through the second quarter of 2019
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
