HomeIndustry SectorsFinance and PolicyEgypt sets aside finance to buy additional fuel

Egypt sets aside finance to buy additional fuel

28 May 2013 – Egypt has been struggling to fund fuel imports, which has led to electricity shortages across the country. To deal with the matter, the country’s government has set aside US$200 million to finance the import of additional petroleum products and is busy approving an additional US$525 million, according the Egyptian cabinet.

In April 2013 the country received US$5 billion in financial support from Qatar and Libya, with the former also agreeing to supply gas to Egypt as needed.

Egypt’s government decided to increase the amount of gas for electricity generation by 9.1% to 84 million cubic meters a day from the start of June 2013. It also plans to increase the supply of diesel by 29% to 22,000 tonnes a day.

The strain on Egypt’s electricity grid is expected to increase in the next few months as temperatures rise and air conditioning units are turned on across the country.

In March 2013, the country’s petroleum ministry blamed power cuts on the state-run electricity sector’s inability to secure funds for imported fuels. But fears of severe summer power shortages have eased in recent weeks because of the Qatari and Libyan support.