Archive for fuel crisis

 

Petroleum Minister Osama Kamal announced on Thursday that private fuel companies would begin setting up mobile fuel stations in parts of greater Cairo in order to resolve the recurring problem of long lines at gas stations.

The minister said that licenses had also been issued for 20 new stations. Denying that there is a fuel crisis, he said “I believe the problem is in the distribution of fuel, not the supply.”

Since the 25 January revolution Egypt has suffered repeated fuel shortages, with cars blocking gas stations and a number of fights erupting over limited supplies in governorates across the country.

The government recently announced its intention to reduce subsidies of petroleum products without compromising middle-income earners.

Edited translation from Al-Masry Al-Youm

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The fuel shortages eased as Egypt on Monday received a new 32 ton shipment from Bulgaria at the Alexandria seaport, official sources at the Ministry of Supply and Internal Trade announced.

The ministry sources assured that the new shipment will help solve the fuel crisis seen across most of the country's provinces, adding that the supply will be pumped into the market immediately.

The sources said the ministry's regulatory bodies have been conducting intensive inspections of oil stations and butane gas storehouses, during which they seized half a million liters of petroleum products that had been on the way to the black market. They added that 1,000 butane canisters were also seized as part of their campaign.

Egypt has been witnessing recurrent fuel shortages since the popular uprising which toppled former President Hosni Mubarak in February 2011. Fights, and sometimes killings, are often reported as citizens vie for limited supplies.

The government has unveiled its intention to cut fuel subsidies, of which businesses are the main beneficiaries. Ordinary citizens, the government says, will not be affected by the cuts.
 

Edited translation from Al-Masry Al-Youm

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Egypt’s fuel crisis entered its second week iSaturday, with drivers continuing to queue in front of gas stations, causing the complete paralysis of traffic in some cities.

The fuel crisis coincides with the start of the new academic year, when the number of public transport users increase. The affected governorates included Giza, Alexandria, Red Sea, Fayoum, Beni Suef, Damietta, Kafr al-Sheikh, Qena, and 6 of October City.

Cairo’s Mehwar highway witnessed the congestion of dozens of cars as some gas stations closed after fuel ran out. The Cairo-Alexandria Desert Road witnessed the same problem.

In Alexandria, hundreds of cars lined up in front of gas stations after the majority of them said they did not have enough fuel for all cars.

Taxi drivers accused station owners of selling the fuel on the black market and threatened to go on strike. Microbus drivers, meanwhile, doubled their fares.

A sharp shortage in fuel also swept Kafr al-Sheikh after officials failed to find any immediate solutions.

Kafr al-Sheikh governor Saad al-Husseiny stressed that finding a solution to the fuel crisis was one of his top priorities, adding he would confront attempts to sell fuel on black market.

In Damietta, farmers complained of the lack of diesel fuel in the majority of gas stations ahead of the rice harvest season. They said they were forced to buy it on the black market to run their machines.

Also, a number of fishing boats stopped working in Damietta, which led to the increase of fresh fish and seafood prices.

The fuel crisis in Fayoum reached its peak, on Saturday, forcing a lot of taxi owners to stop working. The price of a gas cylinder shot to LE70 on the black market instead of the official price of LE5.

In Qena, microbus drivers went on strike on the first day of school in Nag Hammadi, Deshna, al-Mahrousa, and al-Waqf to protest the lack of diesel.

Ministry of Supply official sources told Al-Masry Al-Youm Friday that the cabinet failed to solve the fuel crisis because to the lack of funding sources to contract with for the new shipments.

Edited translation from Al-Masry Al-Youm

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The government is keeping Egypt's ongoing fuel crisis under control by distributing extra fuel and gas to meet demand, according to the Ministry of Supply and Internal Trade

 Citizens' fears of fuel shortages remain the main cause of fuel crises in many governorates, said the head of the ministry's distribution and control department Fathy Abdel Aziz. He also said the crisis declined after increased amounts of fuel were distributed in markets.

Abdel Aziz told Al-Masry Al-Youm that Kamal al-Ganzouri’s government has the availability of adequate fuel for consumption, including 15,000 tons of gas, 38,000 tons of diesel and about 1 million butane gas cylinders. He added that these amounts exceed the amount normally allocated at this time.

Several gas stations in Kafr al-Sheikh witnessed altercations between drivers fighting over limited gas supplies. Long lines also kept drivers waiting for hours and caused traffic jams.

Due to an increase in demand during Ramadan, butane gas cylinders have disappeared from markets and their prices have increased, a problem further exacerbated by the absence of supply agents’ supervision.

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The fuel crisis continued on Monday throughout the governorates. Several gas stations in cities across the country witnessed altercations between drivers fighting over the limited supply of gas.

In Sohag, some 70 drivers blocked the railway today to protest the fuel shortage. The sit-in stopped all trains in Upper Egypt for 90 minutes. Security forces requested that officials in charge of the petroleum supplies release more gas onto the market in order to end the protest.

Daqahliya saw long lines in front of gas stations and two drivers were injured in a fight when they tried to cut in front of the line.

Long lines also caused traffic jams in Mahalla, where locals were attempting to buy fuel in jerry cans for resale on the black market. The Freedom and Justice Party is forming popular committees in partnership with other parties to attempt to resolve the crisis.

Only diesel fuel was available in Minya today, where a police officer was wounded in a brawl in front of a gas station.

In Alexandria, the chamber of commerce warned of a possible 20 percent cut in the supply of butane gas cylinders.

Economists are warning against abolishing fuel subsidies in order to avoid further fights and protests, and suggested readjusting vehicles to use natural gas.

Egypt has witnessed a continuous fuel crisis since the ouster of former President Hosni Mubarak ,who is now serving a 25-year jail sentence for failing to prevent the killing of protesters during the 25 January revolution.

State institutions have been blaming each other for the shortage, with the Petroleum Ministry saying it is providing the needed amounts of fuel, while the Supply and Domestic Trade Ministry claims it is failing to address the shortage.

Edited translation from Al-Masry Al-Youm

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The Petroleum Ministry again denied responsibility for the ongoing fuel crisis on Monday.

The Petroleum Ministry said it is working at full capacity to provide the fuel needed for the local market. Hani Dahi, head of the General Petroleum Authority, said the ministry does not shoulder the responsibility for fuel shortage alone, contending that the ministry and armed forces own under 16 percent of gas stations, while the rest are owned by other state bodies or are privately owned.

A division within the Chamber of Commerce which has been following the crisis announced that the gas and diesel shortage has eased in Cairo and some governorates, but continues in others.

The Social Solidarity and Domestic Trade Ministry has instructed its inspectors to intensify campaigns against gas stations selling fuel to black market suppliers.

Giza Governor Ali Abdel Rahman ordered that he be notified of the quantities of fuel delivered to gas stations and when they were provided so that he could determine which gas stations were not selling the gas they receive to the public.

Seven people were injured in fights outside gas stations as the fuel shortage continued in Cairo and other governorates on Monday. Cars queuing outside gas stations caused traffic jams in major cities around the country.

In Daqahlia Governorate, four people were injured on the Mansoura-Tanta highway and three were injured in Manzala when fights broke out in front of gas stations. Police also apprehended a tuk tuk driver carrying 19 cans of fuel to sell to consumers at increased prices.

Edited translation from Al-Masry Al-Youm
 

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Egypt’s fuel shortages have sparked widespread public anger, adding to the economic challenges facing the next president. The country is preparing for a run-off vote, in which Muslim Brotherhood candidate Mohammed Morsi will face Ahmed Shafiq, the last prime minister to serve under ousted leader Hosni Mubarak. The fuel crisis has prompted the military leadership to spend $100 million on g

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Minister of Planning and International Cooperation Fayza Abouelnaga said on Thursday that the fuel crisis would be resolved in a few hours, as 105,000 tons of gasoline have arrived to be added to the 22,000 tons that have been locally produced, which would be enough for the daily consumption.

“The imported quantities alone are enough for ten days,” the minister told the state-run MENA news service, adding that the Finance Ministry has provided US$100 million for the Petroleum Ministry to provide the market with its needs.

“It was a rumor that made people queue before gas stations,” she said, adding that the petroleum minister confirmed to her that gas stations would be filled by Thursday.

Ahmed Mowafy, director of the supply investigation bureau, blamed private companies for the crisis. “Six of those local and foreign companies gave one-third of their production to factories,” he said.

Mowafy called for new laws that regulate the distribution of fuel.

“Priority should be given to gas stations dealing directly with citizens,” he said, adding that cement factories get a diesel liter for LE1.10 although it costs the government LE5.50.

“They resell it at international prices and make profits.”

He explained that the deficit in diesel fuel production is 27 percent that is imported from abroad, while the total deficit in all petroleum products is 30 percent, but still expected the crisis to end next week.

“We found 64 gas stations last week that hide the fuel or sell it for more than its real price,” he said. “We are talking about 2.6 million liters.”

Mowafy called on the Ministry of Petroleum to recognize the crisis and deal with it with full transparency. “We monitor the tourist areas in particular and notify the ministry so as to avoid security problems.” he said.

Edited translation from MENA

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Social Solidarity and Domestic Trade Minister Gouda Abdel Khaleq held a conference Thursday morning to discuss the fuel crisis.

Abdel Khaleq stressed in a statement issued by his ministry the need to declare a state of emergency to monitor the markets.

Domestic Trade Ministry sources blamed the Petroleum Ministry for the crisis, saying it does not provide the necessary amount of diesel and gasoline.  

The sources said that the Domestic Trade Ministry called on the Petroleum Ministry more than once to increase the quantities of fuel on the market after the former detected a shortage on the market.

The sources said that the Petroleum Ministry could not afford to import raw materials.

Mahmoud Hosny, undersecretary of the Domestic Trade Ministry in Giza said the gasoline and diesel shortage is ongoing in Giza.  

“The governorate [Giza] is suffering from a shortage in diesel fuel by 10 percent, which confirms an improvement in the shortage rate, which was previously 15 percent,” he told Al-Masry Al-Youm.

He added that 6th of October City has been facing increased traffic congestion due to the fuel shortage.

When Al-Masry Al-Youm visited gas stations in Cairo and Giza, taxi drivers said they have been standing in queues for two to three hours waiting for gas, accusing the Cabinet and the military junta of failing to solve the crisis.

Edited translation from Al-Masry Al-Youm

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Shortages of gasoline and diesel fuel have diminished on Tuesday in most areas, with the Petroleum Ministry pumping extra fuel to meet market needs, according to officials at the Ministry of Social Solidarity and Domestic Trade.

“We receive fewer complaints now,” said Fathi Abdel Aziz, head of the ministry’s control and distribution department.

Abdel Aziz also said the ministry already distributed 270 million coupons for each family of three to buy three butane gas cylinders every two months, and for each family of more to buy four cylinders every two months, for LE5 per cylinder.

Egypt has been witnessing fuel crises periodically since the ouster of President Mubarak in February 2011. The most recent wave of the crisis began in mid-March, and the government announced on Thursday that the crisis began to ease in Cairo, although complaints about shortages of gas continue.

Last week, Hesham Saadallah, the head of the ministry’s crisis prediction unit, expected that the petroleum products shortage would continue until 15 May.

Translated from Al-Masry Al-Youm

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