Written by: Fatma Younis
President Abdel Fattah El-Sisi emphasized that international geopolitical challenges constitute one of the main factors directly affecting the cost of providing energy. He explained that these disturbances could lead to an increase in the actual costs of securing energy needs, exceeding the estimates set within the state's general budget.
Fluctuations in oil prices and their impact on the budget
President El-Sisi pointed out that the state relies on specific estimates for oil barrel prices when preparing its budget, where the budget might be set based on a price ranging between $70 and $75 per barrel. However, sudden global developments could push prices to rise to levels ranging between $90 and $100 per barrel, imposing additional pressures and challenges on the financial resources allocated for providing energy.
Infrastructure challenges and providing stable energy
The challenges were not limited to global price fluctuations, as the President noted the existence of other costs related to infrastructure, such as the construction of production plants and the development of transmission and distribution networks. He stressed the importance of taking all these elements, both technical and financial, into consideration when discussing strategies for securing stable and sustainable energy supplies.
Transparency in clarifying financial burdens
The President confirmed that the purpose of reviewing these details is to provide a realistic and transparent picture to citizens about the magnitude of the challenges facing the state. He explained that this helps society understand the complex financial and technical burdens associated with ensuring energy provision and securing the needs of the state and society in light of ongoing international variables.
