Sisi’s subsidy cuts dictated by Gulf dependence | Middle East Eye:
"On 6 July, the day after increases in petrol and diesel prices went into effect, the two men responsible for this measure, Finance Minister, Hani Kadry Dimian and Petroleum Minister, Sherif Ismail, boarded a plane for Abu Dhabi.
This reflected the harsh reality that justifying price increases on Egyptian public is not necessarily as important as seeking to solicit Gulf Arab donors, persuading them that the billions of dollars invested in Egypt will not be swallowed up in the bottomless pit of the state’s budget deficit.
The price increases have been met with widespread discontent, as they have led to a spike in transport costs, which has already progressed on to increased food prices. However, the measure should not have come as a surprise. The government has been grappling with energy subsidies for decades, and the problem worsened when oil prices climbed in the mid-2000s to their current level of over $1 /barrel."
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