The UAE can offer Egypt guidance on tricky issue of subsidy reform | The National:
"At times of crisis, the impossible becomes inevitable. Egypt’s unaffordably low energy prices had long been considered politically untouchable, even as they drained the treasury and led to rampant consumption, dried up exports and caused an electricity crisis. But now the new government under the president Abdel Fattah El Sisi has moved suddenly to increase fuel prices — prompted by its international donors, by business at home and by economic reality.
During his time as president, Anwar Sadat was nearly overthrown when he tried to reduce food and fuel handouts. Hosni Mubarak did not dare to touch them during his 30-year tenure, and his administration introduced the pricing system that is at the root of the current gas and power shortage. Mohammed Morsi’s short-lived government increased gas prices to industry but otherwise made little headway.
But on July 4, the oil ministry announced a sudden, sharp set of price rises: the standard 92-octane petrol up 40 per cent, and diesel up 64 per cent. Electricity subsidies will be eliminated over the next five years. The new budget cuts energy subsidies from 134 billion Egyptian pounds (Dh68.63bn) in 2013-14 to 100bn pounds this fiscal year. The price increases brought complaints, strikes from taxi drivers and worries about stoking inflation."
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