Former petroleum minister Engineer Osama Kamal stated that Egypt has set the price of a barrel of oil in the current budget at roughly $80 and emphasised that the decision by OPEC to cut oil output by two million barrels will not have a big impact on Egypt.
In a telephone interview with a television programme, Kamal further explained that the OPEC decision to cut oil production by two million barrels was a political one and that the actual events on the ground will be entirely different.
The former petroleum minister noted that while America pushes for a cap on oil prices, which is undesirable to nations that produce oil, the cut in output is intended to raise the price of oil slightly.
The decision by OPEC to cut oil production by two million barrels may not go into effect, he predicted, and there will be a small increase in production over the next few months. He estimated that the fair price for a barrel of oil to be $60, and predicted that there would not be a significant increase in prices because it hurts producers and consumers.
The Energy Pricing Committee meets every three months to decide the prices of petroleum products, including the prices of gasoline and diesel, in compliance with the restrictions and link prices to international prices. The new prices are in effect for a period of three months.
The committee responsible for setting new gasoline pricing is working with representatives from the General Petroleum Corporation, the Natural Gas Holding Company (EGAS), and the Ministry of Finance.
The release of the new rates for gasoline and the other petroleum products through the end of the current year 2022 is awaited by around 2,784 gas stations operated by the two cooperation firms, Egypt Petroleum.
At their meeting last Wednesday in Vienna, OPEC + resolved to cut output by two million barrels per day. According to news reports, the cut will go into effect in November.
The joint ministerial monitoring committee meetings will henceforth take place every two months, according to a statement from OPEC. The OPEC + committee set the next group meeting for next December.
Following the announcement of the OPEC+ decision, oil prices reversed their downward trend, beginning to record increases of less than 1% up until the time of writing this report, bringing Nymex crude to levels currently around 87 dollars a barrel while Brent crude is getting close to levels of 93 dollars a barrel.
On Wednesday, July 13, 2022, this morning, the committee changed the price of gasoline and diesel until the report was published:
Fuel cost 80: It increased by 50 piasters to 8 pounds per litre as opposed to 7.50 pounds.
Petrol prices in 1992 increased by 50 piasters to 9.25 pounds per litre as opposed to 8.75 pounds.
95-octane gasoline cost 10.75 pounds, a rise of one pound, as opposed to 9.75 pounds.
Diesel and kerosene now cost 7. 25 pounds per litre, up from 6. 75 pounds, or a 50-pound increase.
Diesel now costs 5000 pounds per tonne, an increase of 400 pounds.
The former petroleum minister discusses how the “OPEC” decision affected the cost of gasoline and diesel.
About Author
