Cairo energy storage subsidy policy development and reform commission

How did Egypt's energy subsidy reform impact the economy?

This paper examines the short- and long-run economic impact of Egypt’s energy subsidy reform in July 2014 (with-out and without compensating transfers for the bottom 40 percent of the income distribution) and the decline in global energy prices, as well as the long-run impact of phasing out the energy subsidies over a 5 year period.

When did Egypt re-introduce a phase-out of energy subsidies?

In July 2014 the Egyptian government re-introduced major reforms to phase-out energy subsidies through a staged series of increases in the officially mandated prices for petroleum, gas and electricity.

Is subsidizing energy a sustainable policy in Egypt?

ades, Egyptians have relished subsidies targeting specific social and economic objectives. Subsidizing energy plays an important role in making fuel and electr city prices afordable, however, this governmental policy could be considered unsustainable.

Are energy subsidies justified in Egypt?

1. Introduction The Egyptian government, like many of the countries in the MENA region, has employed relatively large energy subsidies for decades, justified as a means of augmenting the incomes of lower income and middle class households through low cost energy services.

Are energy subsidies constant at pre-reform levels?

For the baseline case, subsidies remain constant at pre-reform levels. This is compared with three possible scenarios: The July reforms are introduced; international energy prices fall and energy subsidies are further reduced by an assumed 40% annually.

What happened to fuel subsidies in FY 2014/15?

orm program to gradually phase-out energy subsidies that particularly targets fuel pricing. Therefore, in FY 2014/15, fuel subsidies significantly declined to EGP 74 billion, representing 76% of energy subsidies, 9% of the total government subsidies, and only 10% of public expenditure, according to MoF.It is obvi