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| Africa North | |
| The Crash Arrives: Egypt Petrol Shortage Causes Long Queues | |
| 2012-03-23 | |
Industry professionals say the situation has shot fuel prices up on the black market, where some motorists have no choice but to go, amid insufficient public transport alternatives. The queues have brought more traffic to Cairo's notoriously busy streets, sparking incidents of road rage, according to press reports. "There's no fuel or diesel at all. We wait five hours to fill the car and then we can start working," said taxi driver Rashed Said. "I only found fuel at this petrol station," said Maged, another driver. "This has been the case since yesterday," he said pointing to the long queues. Fuel is highly subsidised in Egypt to maintain the price of 15 US cents (11 euro cents) per litre of 80 octane petrol, the cheapest quality. The sector has been under pressure for months due to a fall in foreign reserves and an increase in the budget deficit, threatening subsidies. In mid-January, the country suffered a shortage for several days, made worse by rumours of price hikes that sparked a rush on petrol stations. Minister of International Cooperation Fayza Abul Naga sought to calm fears, telling the press that "the government has no intention of raising fuel prices." Petroleum Minister Mohammed Abdullah Ghorab said the situation was due to a "lack of confidence" by consumers, insisting that petrol stocks are sufficient. Amr Mustafa, deputy head of the General Petroleum Authority, said smugglers control 15 to 20 percent of petrol products available on the market, the independent daily Al-Masry Al-Youm quoted him as saying. Egypt's economy has been in crisis since a popular uprising last year which toppled president Hosni Mubarak ...The former President-for-Life of Egypt, dumped by popular demand in early 2011... , marked by a drop in tourism and foreign investment. Cairo is currently in talks with the International Monetary Fund over a $3.2 billion loan to ease the crisis. | |
| Posted by:trailing wife |
| #13 They will be smuggling in from Libya where its even cheaper. Those smugglers are saving the government a lot of money. |
| Posted by: Phil_B 2012-03-23 20:13 |
| #12 Amr Mustafa, deputy head of the General Petroleum Authority, said smugglers control 15 to 20 percent of petrol products available on the market, the independent daily Al-Masry Al-Youm quoted him as saying. This guy knows little about economics. Why would smugglers pay spot price for petrol to smuggle into Egypt when they could arrange for their supplies through corrupt Gov officials at 80% discount. Back hand 40% to the officials and every one is happy including the Saudis who will be paid through the ever generous IMF, who are mainly funded by the US. Win/win all round, especially for the Saudis. |
| Posted by: tipper 2012-03-23 17:55 |
| #11 One of muslim brotherhood entity's presidential candidates wants offenders against islam, to be bled to death. Someone would have to be brain dead to invest in that pig-pen. Barry and Hillary, tell us what you have done for threatened Copts in North Africa. Nothing? |
| Posted by: Jinesing Dingle1220 2012-03-23 16:31 |
| #10 It's 7.95 IS per liter, IS is 3.735 per USD. There are 3.78541178 liters per gallon. Do the math, Besoeker. |
| Posted by: g(r)omgoru 2012-03-23 16:20 |
| #9 You MUST be paying 'retail' g(r)om. |
| Posted by: Besoeker 2012-03-23 15:19 |
| #8 Cry me a river, Americans---I pay 8.06 USD per gallon (2.128514056 per liter) |
| Posted by: g(r)omgoru 2012-03-23 14:49 |
| #7 There are less than 4 liters in a gallon. At 15 cents a liter, a gallon is less than 60 cents. The last time I filled up I paid almost $4 a gallon. I couldn't afford to fill my tank, but I got it up to halfway. Cry me a river, Gyppos! I can't believe these savages continue to receive US taxpayer money. It's an abominiation. |
| Posted by: Scooter McGruder 2012-03-23 10:26 |
| #6 they will undoubtedly be turning to "Green Energy" sources very soon. Soylent green. |
| Posted by: g(r)omgoru 2012-03-23 09:07 |
| #5 ...they will undoubtedly be turning to "Green Energy" sources very soon. They might as well use algae; they know all about slime. |
| Posted by: Steve White 2012-03-23 08:55 |
| #4 "Fuel is highly subsidised in Egypt to maintain the price of 15 US cents (11 euro cents) per litre of 80 octane petrol, the cheapest quality." There is a WSJ article yesterday on this. It points out that bread is also subsidized and that Egypt's food situation is as bad as its fuel situation. |
| Posted by: Lord Garth 2012-03-23 08:53 |
| #3 If this continues, they will undoubtedly be turning to "Green Energy" sources very soon. |
| Posted by: Besoeker 2012-03-23 07:15 |
| #2 Wot about Hamas, then! Israel to allow 450,000 liters of fuel into Gaza to ease energy crisis |
| Posted by: tipper 2012-03-23 04:46 |
| #1 So, the artificial low price has bu them where it hurts. NO sympathy from me. |
| Posted by: Redneck Jim 2012-03-23 00:45 |