Written by: Fatma Younis
President Abdel Fattah El-Sisi emphasized that the Egyptian state bears the greater part of the true cost of energy provided to citizens and the industrial sector, in light of the continuous rise in global prices, stressing the importance of public awareness regarding the realities of the major challenges facing the energy sector and its complex supply chain.
Efforts to Face Energy Challenges and Expand Renewable Sources
The President's statements came during his participation in a panel discussion entitled "The Journey of Egyptian Energy: National Achievements and Future Prospects," as part of the Egypt Forum, in the presence of the Prime Minister, the Ministers of Finance, Electricity and Renewable Energy, Petroleum and Mineral Resources, along with an elite group of energy experts. Sisi explained that the limited availability of resources sometimes drives the state to borrow to ensure the continuity of energy supplies, pointing out the government's keenness to fully pay the dues of foreign partners to support the investment trajectory in the sector.
Budget Burdens and the Impact of Global Price Fluctuations
For his part, the Prime Minister noted that the general budget was built on an estimated basis of $75 per barrel of imported petroleum, while geopolitical and supply chain disruptions pushed the price to around $110 per barrel, creating massive financial burdens. The Minister of Finance explained that government financial support in various fields amounts to huge sums approaching one trillion Egyptian pounds when adding related loan expenses. In the same context, the state aims for a studied expansion in the use of new and renewable energy to achieve a sustainable energy mix, reaching a 50 percent reliance rate by 2030, while continuing to develop electricity transmission and distribution networks and enhancing liquefied gas reception capabilities.
