Egypt has saved around 35 billion Egyptian pounds (about $691 million) in petroleum subsidy spending from July 2024 through April 2025, a senior in the Ministry of Finance told Al Manassa.
The source, who spoke on condition of anonymity, attributed the savings to a series of fuel price hikes implemented during that period.
According to the source, the government had allocated 135.4 billion pounds (about $2.68 billion) for the purchase and subsidization of petroleum products over those 10 months, but spent only 100 billion pounds (about $1.98 billion).
"Spending is expected to range between 130 billion pounds and 140 billion pounds (about $2.57 billion to $2.77 billion) for the full fiscal year," the source said, adding that the final figure will be lower than the 154.4 billion pounds (about $3.05 billion) projected in the 2024-25 draft budget.
The government raised fuel prices three times in 2023 and once in April this year as part of a broader agreement with the International Monetary Fund to rein in public spending on subsidies.
Since President Abdel Fattah El-Sisi assumed office, the prices of fuel and oil derivatives have been adjusted more than 20 times.
A previous report by the Ministry of Finance said Egypt spent 71 billion pounds (about $1.4 billion) on petroleum subsidies during the first half of the current fiscal year, from July to December 2024.
Despite the recent savings, the ministry source confirmed the government plans to further reduce spending on fuel subsidies due to declining domestic oil and gas production and the high cost of electricity generation, particularly during the summer months when energy consumption surges.
The government began electricity rationing in July 2023 with one-hour daily power cuts, later extending them to two hours in January and then three hours in June. The Electricity Holding Company cited increased loads on the grid and high temperatures. By September 2023, the crisis reportedly eased after Egypt signed contracts to import large quantities of gas, oil, and mazut fuel.
"The state aims to eliminate fuel subsidies entirely by the first quarter of 2026 at the latest," the source said. "However, it will continue subsidizing diesel to avoid burdening the average citizen."
The draft budget for the upcoming 2025-26 fiscal year targets a further reduction in fuel subsidy allocations to 75 billion pounds (about $1.48 billion), according to a cabinet statement in March.
