13 March 2017
Egypt’s deal with Iraq on crude oil supplies
In the Egyptian economy, the production of gasoline, gas, oil and fuel oil has been put in jeopardy by the ongoing petroleum shortage. This involves supply cuts to factories and frequent electrical outages undermining the stability of the domestic economy, which is currently suffering a major setback.
In an attempt to tackle this lack of raw materials, Egypt’s Government recently signed a deal with Iraq to receive crude oil supplies, in order to then refine the product and satisfy the national demand for gasoline, gas and fuel.
According to the Reuters news agency, fuel subsidies have been drastically reduced by the Government in an effort to curb national deficit. As a consequence, local fuel prices have lately surged 23%, as stated by an official announcement of the Egyptian Government, also because of a VAT-related inflationary spike of 13%.
This overall situation, together with the elevated cost of transportation in the country, has been inevitably compromising the import system in Egypt in the last years. Such measure aims to drive radical change and bridge the gap, encouraging a solid economic recovery in a new phase of the import-export dynamics that opens the door to interesting business opportunities.
If you are planning to export your goods to Egypt and need assistance with the process, don’t hesitate to contact us. Our experts will be right there to help you.
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