Egypt's GDP expected at 5-6 pct in 2015/2016 fiscal year- minister

Newspaper Title: Reuters

Newspaper Number:

Wednesday - 13 May 2015

Egypt will begin rolling out a smart card system for subsidised fuel from June 15 as part of plans to reduce costly energy subsidies over time.

A similar system for subsidised bread has been seen as successful in reducing consumption and easing the strain of subsidies on the government's budget and foreign reserves.

Fuel subsidies have long weighed on Egypt's state budget and contributed to the economic stagnation that President Abdel Fattah al-Sisi promised to tackle when he took office last June.

Arabi said the government would not raise fuel prices immediately once the smart card system comes into force.

The government reduced fuel subsidies last summer, raising prices by up to 78 percent, in a move lauded by economists but criticised by some Egyptians accustomed to cheap energy.