The energy committee of Egypt's National Democratic Party has called for the abolition of the subsidies on petroleum products over the next five years
It has also called for the formulation of new policies to satisfy Egypt’s projected needs for petroleum and electricity.
In its most recent report, the committee called for the examination of ways to avoid the negative impacts of the depletion of energy resources, given the already-declining rates of industrial, agricultural and economic development.
According to the report, 6-7 percent of the country’s gross domestic product (GDP) is used to provide petroleum products for local consumption at prices which are incommensurate with the cost incurred.
The report added that there is no mechanism to direct this money to its target specific beneficiaries.
The total amount of petroleum products consumed in the fiscal year 2008/09 was 28.5 million tons, said the report.
The General Petroleum Authority’s quota represents 36 percent of this amount.
