Gov’t to continue hedging against oil prices in FY19/20; budgets sharp cuts to electricity subsidies
The government updated the hedging mechanism to continue protecting against oil and food price volatilities in the upcoming FY19/20, which comes as the country had already started the hedging mechanism in FY18/19 last January. Sources in the oil sector told Al Borsa that the mechanism of hedging against the risks of rising oil prices has been implemented last January on the basis of a hedging price of USD70/b. The government has slashed electricity subsidies by c75% to reach EGP4bn in the upcoming FY19/20, compared with EGP16bn in FY18/19.
This website uses cookies to make the site work, to understand if the site is working well, how it is being used, to connect to social media sites (such as Facebook and Twitter) and to collect information useful to allow us and our partners to provide you with more relevant ads . Some cookies are essential to make the site work, but you can control how we use non-essential cookies at any time by clicking the “ON/OFF” button next to each category. For more information about the cookies used on this site, see Privacy Policy.
Decide which cookies you want to allow.
Strictly Necessary
These cookies are essential in order to enable you to move around our website and use its features, such as accessing secure areas of our website. Without these cookies, any services on our Site you wish to access cannot be provided.
Analytical/performance cookies
Visitors use our website, for instance which pages you go to most often, and if you get error messages from web pages.