Egypt hopes to cut spending on oil product subsidies to E£35bn for the 2016-17 financial year beginning 1 July ($4.0bn at the official rate of $1=E£8.8), from a budgeted figure of E£61.7bn for 2015-16. But plans in the draft budget are based on $40/B Brent. With Brent currently around $50/B, they may need to be revised upwards.
Oil Minister Tarek El Molla expects actual 2015-16 spending on oil product subsidies of E£45-48bn ($5-5.4bn), around E£15bn or 25% under budget: seemingly impressive until one notes that Brent for the year to May averaged $43.6/B, almost 40% less than the budgeted $70/B. (CONTINUED - 411 WORDS)
