El Molla: Petroleum investments reached $8.1 billion in FY 2016/2017

MOP Tarek El-Molla

Minister of Petroleum Tarek El Molla said Saturday that the current fiscal year witnessed an estimated investment of $ 8.1 billion in the petroleum sector.

In a press conference, he said that the Petroleum Ministry targets $10 billion in investments during the current fiscal year 2017/2018, pointing out that the petroleum sector’s strategy aims to attract more investments in the coming period.

Despite the increase in prices, petroleum products are still subsidized, with the ministry covering 65 percent of the cost, Molla said.

He added that there was still a 35 percent gap between production cost and selling prices of petroleum products in the local market.

During a television interview last week, Molla said that the government started rationalizing fuel subsidies in 2014, and that the savings will go to finance programs in different sectors of health, education and transportation.

Fuel prices have been increased twice recently, in tandem with Egypt’s reform program.

(Source: Egypt Today)

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