The rise in fuel prices in Egypt is credit positive, Moody’s Investors Service said on Thursday, adding that the hike earlier in the week comes as part of the country’s economic reform program.
Moody’s said in a report that the price hike will help Egypt meet the agreed target for a fiscal deficit of 8.4 percent of GDP in fiscal 2018/2019, compared to around 9.8 percent of GDP in 2017/2018.
It added that the new prices will help in reducing the overall subsidy bill from its estimate of 7.5 percent of GDP in 2018 to 6.5 percent in 2019.
In other economic news, the CEO of Italy’s Eni, Claudio Descalzi, lauded the fruitful cooperation with the Egyptian petroleum sector.
He said that 70 percent of the company’s investments are made in Egypt.
Descalzi noted that the total investments pumped in Noras and Zohr fields have so far reached $8.4 billion, adding that Eni seeks to pump investments of $3 billion in Egypt during the upcoming period.
He made his remarks during a meeting between him and Egyptian Petroleum Minister Tarek el-Molla, Eni Chief Upstream Officer Antonio Vella and General Manager of the Italian-Egyptian Oil Company (IEOC), affiliated to the Italian oil firm Eni, Fabio Cavanna.
