Egyptian Fuel Stations Report Shortage

The Egyptian public has been gripped with worries over a fuel shortage for over a week and many petrol stations have been forced to open for only a few hours or shut down completely. The government says that regular- and premium-grade petrol is available, but motorists are hoarding due to speculation that prices will increase.

Reporters were told by Minister of Petroleum Abdullah Ghorab that over 15,000 tonnes of petrol is provided to fuel stations every day, which is 2,000 tonnes more than the usual consumption every day. He said that the government doesn’t intend to raise fuel prices, which are subsidised, and he urged the public not to panic. However, station managers say the supplies have been shut off. Sameh Seiedi, in Cairo, told journalists that they use to have between 57,000 litres and 60,000 litres every day, but they aren’t getting more than 30,000 litres. It’s been like this since the turn of the year, he added.

Workers and consumers are frustrated with the burden of economic uncertainty while the country doesn’t have any political instability since President Hosni Mubarak was overthrown last year. Factory staff and truck drivers are protesting for higher pay and better working conditions, and consumers’ nerves have been worn further with concerns about petrol.

Streets in Cairo and other major cities have been blocked by lines of cars that often pile up around the block. This comes as the shortages began to be apparent on Saturday. Many drivers have gotten to pumps only to find that the fuel supply was dry.

Reports that shortages are getting worse, which the government denies, have prompted anger and conspiracy theories. Some believe the government could be using a tactic to get the public ready to pay more for fuel and then restrict subsidies that weigh on the treasury. However, the government says there is no plan of the kind. It has also asked the International Monetary Fund to help fill the budget deficit. Some speculate that the fuel shortage shows how urgent the country’s finances are, as its foreign currency reserves have fallen. Egypt is a crude oil exporter, but some refined products are imported to meet its needs.

On Monday, Oil Deputy Minister Mahmoud Nazim said the government doesn’t intend on raising petrol prices and supplies to local markets were increased. Companies delivering petroleum products to fuel stations have started raising their supplies 33% above usual to 5.21 million litres per day. However, Nazim didn’t explain why there is currently a shortage. Analysts think that the cause could have been made worse by hoarding due to fears of possible turmoil during the January 25 anniversary of the beginning of the revolution that ousted Mubarak. Some are afraid of new violence during demonstrations by those opposed to the military that’s now in charge.