Government is considering implementation of a new mechanism for monitoring distribution of butane cylinders

Ahmed Farahat
2 Min Read
Minister of Petroleum Tarek El Molla

The government is considering the implementation of a new monitoring mechanism for the system of distribution of butane cylinders.

Government sources told Daily News Egypt that a new monitoring mechanism is being considered for the distribution of cylinders from production centres to warehouses, as was the case with gasoline, diesel, and fuel oil. According to the cabinet’s Information and Decision Support Centre (IDSC) data, the value of government subsidies for both household and commercial butane is about EGP 41bn after recent increases.

The Ministry of Petroleum has raised the prices of household butane cylinder cartridges to EGP 50 instead of EGP 30, as well as from EGP 60 to EGP 100 for commercial use.

Minister of Petroleum and Mineral Resources Tarek El-Molla said that the Gasoline Smart Card system has been cancelled, especially as it is working to create a black market for petroleum products, which is totally unacceptable.

El-Molla said at a press conference at the cabinet on Wednesday that the smart card has many disadvantages, such as establishing two prices for the same good.

Sources at the Ministry of Petroleum said that the activation of smart card system for fuel is no longer important, especially as the government did not announce a quota for car-owners.

The sources pointed out that the increase in fuel prices has nothing to do with the implementation of the new system, especially as the increase in the prices of gasoline and diesel came to ease the burden on the state budget, while the smart card system is aimed at organizing the purchase and sale process only.

The smart card system for individuals is optional, while being mandatory for warehouses and major consumers, noting that 8m cards were issued for clients, which will all be cancelled, according to the sources.

The application of smart card system is not only for citizens, but there are stages of control for warehouses, major consumers, factories, companies, and hospitals.

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