Written by: Soheib Shams
Prime Minister Mostafa Madbouly revealed the truth regarding statements circulating about daily long-term electricity load shedding, confirming that what has been shared on social media platforms is inaccurate and does not reflect the reality of what was reviewed during official events.
Clarification Regarding Energy Price Scenarios
The Prime Minister explained that his speech in a previous session addressed the significant global challenges facing the energy sector and its future, in light of current global oil price increases. He noted that the state's general budget for the current fiscal year was built on an estimated price of $75 per barrel of oil, while the current price has exceeded the $110 barrier, which imposes additional burdens and challenges on the system of providing the necessary fuel and gas to operate the sector.
Alternatives and Proposed Scenarios
During the event, the Prime Minister reviewed three potential scenarios for dealing with the large gap in energy prices; the first scenario involved passing the full increase to the citizen by raising prices, while the second relied on the state bearing the cost difference temporarily to avoid additional burdens on individuals, despite its potential impact on public debt. The third scenario involved adhering to the financial allocations specified in the budget while reducing the quantities of purchased petroleum products.
The State's Position on Financial Burdens
The Prime Minister emphasized that the state chose at this stage to bear the financial burden resulting from rising energy prices, in order to avoid imposing any new burdens on citizens, stressing that the economic group took this decision out of its keenness to absorb a large part of the repercussions of the current global crisis instead of passing its direct cost to the public.
