Egypt plans to cut fuel imports by 25% in May as demand eases

The Egyptian government is currently planning to reduce its fuel imports by up to 25% in May, as domestic demand declines following the introduction of commercial energy-saving measures, Asharq Business reported on May 3, citing government sources.

The planned reduction in imports reflects a combination of lower consumption and ongoing government efforts to rationalise energy use, while also aiming to ease pressure on public finances. Diesel imports are set to fall by around 25% year-on-year (y/y) to 420,000 tonnes, compared with 540,000 tonnes in April. Petrol imports will also be reduced by 15% y/y, reaching 190,000 tonnes, down from 230,000 tonnes. 

In contrast, the government will maintain imports of liquefied petroleum gas (LPG), commonly used for household cooking, at 170,000 barrels in May, unchanged from current levels, according to the government source. 

Egypt typically imports around 1mn tonnes of petroleum products each month to bridge the gap between domestic supply and demand. This includes 600,000 tonnes of diesel, 230,000 tonnes of petrol, and 170,000 tonnes of LPG. The county’s annual consumption of petroleum products is valued at nearly EGP 1 trillion ($18.6bn), with roughly 60% of that total directed towards powering electricity generation.