The government has approved starting the application of smart cards for the distribution of butane gas, having claimed the system’s success in subsidized bread distribution.
By applying the smart card system to subsidized supply commodities, the Egyptian government says it seeks to ensure that subsidies, which account for at least 30 percent of the budget, reach to their targeted low-income recipients, therefore eliminating back-door dealers who profit from the subsidies on the black market.
Egypt, relying heavily on butane imports from Arab states, has witnessed chronic shortages in supply, which it blamed on bad weather that delayed the delivery of shipments on several occasions.
