Khaled Osman, the deputy head of the General Authority for Petroleum, said that the government would not completely cancel petroleum products' subsidies or increase gasoline prices, except after the application of the smart card system, in order to ensure that subsidies would be directed to the needy class only, Al-Watan newspaper reported.
He added in a meeting of the House of Representatives' Committee on Energy and Environment on Monday that petroleum products' subsidies currently stand at LE70 billion, 65 percent of which is allocated to diesel fuel.
He pointed out that diesel fuel prices have increased three-fold after the flotation of the pound in November.
"The [petroleum] ministry is done with its part in the smart card system, but needs other ministries to identify those entitled to subsidized petroleum products, in order to activate the system," he added.
The ministry seeks the rationalization of the subsidies system, not its cancelation, emphasized Osman.
It is unfair that people who own 10 cars get diesel fuel at the same price as a poor man who owns an old car, said Osman.
Committee Chairman MP Talaat al-Seweidy expressed the parliament's concern regarding the cancelation of gasoline subsidies, while the income of citizens remains the same.
The 2016-2017 fiscal year's budget approved by the parliament stresses the cancelation of subsidies whithin five years, Seweidy said, adding that the recent increase in fuel prices was susrprising.
He stressed the need to identify those who deserve subsidized goods before any new increase in fuel prices. He also stressed the need for the parliament to approve any decisions by the Cabinet in this regard.
