The Ministry of Electricity and Renewable Energy is currently studying whether or not to stretch the timeline for its original five-year plan to phase out power subsidies. The study is expected to be concluded next month, with proposals scheduled to be sent to the Council of Ministers in the first week of July. The government had originally developed a plan to reduce all electricity subsidies within five years starting in 2014, with the exemption of the first three categories of low- and medium-income citizens. According to Deputy Electricity Minister Sabah Mashaly, the restructuring programme for electricity prices is still expected to be implemented in July, with other changes pending completion of the study. The Minister added that there is a high probability that subsidies would continue until 2020/25, given the devaluation pressures on income and changes to the nation’s fuel mix, which resulted in additional costs (petroleum products now account for c30% of fuel consumption vs. 14% when the plan was developed), in addition to the increase in the price of heavy fuel oil (mazut). (Al Borsa)