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Oil prices fall to $61.15 per barrel as trade war subsides - Daily News Egypt

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Oil prices fall to $61.15 per barrel as trade war subsides

Decline in oil prices to reduce fuel subsidies to 10% in Q1 of FY 2019/20

Oil prices fell to around $61.15 per barrel on Monday, compared to $64 average last week, as fears that the US-China trade war may become more severe have decreased after US President Donald Trump said the proposed tariffs on China could be delayed or stopped if Beijing took “positive action.”

A source in the oil sector told Daily News Egypt that the continued decline in oil prices in world markets will help the ministerial committee concerned with reviewing fuel prices in September to ease prices of petroleum products.

He pointed out that the decline in the price of a barrel of oil in world markets will reduce the value of fuel subsidies during the first quarter of the current fiscal year (FY) 2019/20 to about 10% of the total actual cost in the domestic market, compared to the planned 15% after the recent increase in the fuel prices at the beginning of July.

Noteworthy, Prime Minister Moustafa Madbouly issued a decision to take charge of the follow-up committee of petroleum products pricing linking it to the local market, except for the gas and petroleum products used by the electricity sector and bakeries. Other costs will also be taken into consideration, in addition to other costs which will be amended in a non-cyclical manner.

These products’ prices will be reviewed in the local market, and the rate of change in the selling price should not exceed or fall below 10% of the selling price.

The Ministry of Petroleum said in a previous statement that the price of octane-92 petrol to reach EGP 8 per litre instead of EGP 6.75, and octane-80 petrol to EGP 6.75 compared to EGP 5.50. The ministry said that the price of the octane-95 petrol increased to EGP 9 per litre instead of EGP 7.75, and rose to EGP 6.75 per litre from EGP 5.50.

The price of LPG cylinders rose from EGP 50 to EGP 65 for domestic use, and from EGP 100 to EGP 130 for commercial use, the statement said.

The price of mazut for the manufacture of bricks and cement increased to EGP 4,500 per tonne instead of EGP 3,500 previously. In addition, the price of natural gas increased for brick kilns manufacture to about EGP 85 per million thermal units (MTU) and to EGP 3.50 per cubic meter for vehicles.

The natural gas price for household, in the first category of 0-30 cubic metres consumption, was estimated to be 235 piasters per metre, the second category of more than 30 to 60 cubic metres was estimated to be 310 piasters, and the third of more than 60 cubic metres was estimated to be about 360 piasters.

The government kept the price of mazut for food and electricity industries unchanged.

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