The Egyptian government has taken measures to hedge up to 35% of its petroleum needs for the current fiscal year 2023/2024, which ends in June, against the risks of rising global oil prices.
Egypt has set the price of a barrel of oil at $80 in the budget for the current fiscal year 2023/2024, a 15% decrease from the barrel price in the previous budget, while the current price of a barrel of oil in the international markets ranges between $85 and $86.
The official, who requested anonymity, told "Economy Al-Sharq" that "hedging contracts were agreed upon with a barrel price ranging between $75 and $80, and hedging was conducted for approximately 35% of the total petroleum imports, which amount to 100 million barrels annually."
Subsidies for petroleum products in Egypt have surged by 93.5% to 116 billion Egyptian pounds in the fiscal year 2022/2023, according to data from the Egyptian Ministry of Finance. The government aims to keep subsidies for the current fiscal year at no more than 119.4 billion Egyptian pounds.
