The General Petroleum Authority has submitted a plan to Finance Ministry for May and June including the allocations needed for oil product imports costing US$1.1 billion per month. Official sources warned of a new oil crisis due to a shortage in finances needed for the imports.
The authority needs LE8 billion a month to provide fuel products while stopping illegal trading and smuggling, sources told Al-Masry Al-Youm, adding that the number may rise to LE9 billion based fluctuation in the oil market due to the political situation between Iran and the West.
The authority is working to provide 70 percent of the finances needed and still needs support from the Finance Ministry, which did not answer to requests for the finances required for the next three months.
The sources, which preferred to remain anonymous, said the authority received the finances for this month only, while there are no guarantees for finances for the next two months, portending a crisis.
The head of the General Petroleum Authority, Hani Dahi, said the authority needs US$35 million per day to provide for needs of the local market for diesel, butane and gas.
Petroleum Minister Abdullah Ghorab said the Finance Ministry will perform its role in providing the finances needed through the ongoing mutual coordination.
Former Finance Minister Hazem al-Beblawy said the authority had to borrow from banks to cover its financial needs. Beblawy said the authority is bleeding red ink, which increased after the 25 January 2011 revolution.
Petroleum engineering professor at Pharaohs University, Ramadan Abu al-Ela, said the oil imports endanger Egypt's reserves of foreign funds.
Translated from Al-Masry Al-Youm