Cooking gas crisis due to distribution: Petroleum minister

Cooking gas crisis due to distribution: Petroleum minister

Egypt has enough butane gas cylinders to meet local consumption needs but the problem lies in inefficient distribution, the country's petroleum minister Abdallah Ghorab told parliament on Monday Al Ahram reported

The minister was summoned before parliament by several MPs requesting information on Egypt's current shortage of cooking gas, which the majority of the country's households receive in the form of butane cylinders.

Some 12 million Egyptian households depend on such subsidised gas for heating and cooking purposes.

"The commission that is given to distributors is very little: 10 piastres on each cylinder," Ghorab indicated. "That is why a black market appears and the number of cylinders available to citizens falls."

There is no money in the budget to cover an increase in commissions for sellers, he added.

Butane cylinders are subsidised by an annual LE20 billion ($3.3 billion), around 20 per cent of total subsidies granted to fuel in Egypt.

Official cylinder prices have not changed since 1991, according to the minister, and sit at LE2.5 per cylinder.

The current crisis, however, has pushed the price of a single cylinder up to LE35 or even LE50.

"The subsidies open opportunities for profiteering," the minister added.

Misuse of a household resource by Egypt's industry is also to blame, Ghorab said, giving the example of brick factories which buy up subsidised cylinders rather than spend more on dedicated industrial gas supplies.

Ghorab said the government is increasing the proportion of gas cylinders assigned to industry to 20 per cent of its total production to reduce industry's dependence on household resources.

He also suggested direct deliveries from government warehouse to end-users, eliminating the use of intermediary dealers and reducing the changes of smuggling and profiteering.

Such a scheme is currently being tested in Qalubiya governorate before its introduction in other Egyptian governorates, Ghorab said.

The minister's solutions failed to satisfy many MPs in attendance at Monday's parliamentary session.

Some complained that Egyptians were not reaping the fruits of the country's abundant natural gas reserves, asking for new infrastructure to connect more homes to gas grids.

Around 4.5 million households have piped natural gas, leaving 12 million others dependent on butane cylinders, according to figures cited by Ghorab.

"In 2011 we connected gas to 600,000 households and we plan to increase this figure to 750,000 in 2012," Ghorab explained. "But we don't have the technical abilities to connect natural gas to all households at a higher rate."

Some MPs also called for a definite timeline for natural gas to be connected to the rest of Egypt's households.

One MP complained that cylinders, which weigh 12.5 kilogrammes, are usually not filled to their maximum capacities, with others adding that supplies that are supposed to last 20 days run out within half that time.

The minister, however, did not comment on the issue.

24 dead in Izmir as magnitude 6.6 quake shakes Turkey’s west coast (UPDATE)
24 dead in Izmir as magnitude 6.6 quake shakes Turkey’s west coast (UPDATE)
Azerbaijani Embassy in Turkey opens hot line in connection with earthquake in Izmir
Azerbaijani Embassy in Turkey opens hot line in connection with earthquake in Izmir
Petkim’s products exported to 78 countries abroad
Petkim’s products exported to 78 countries abroad
Loading Bars
Latest
Parliamentary elections being held with new election system in Georgia
Parliamentary Elections being held in Georgia
Azerbaijani products to be showcased at int’l exhibition in Shanghai
Azerbaijan's income from sales of pharmaceutical products increases
Propylene production grows in Azerbaijan
Azerbaijan investing in alternative energy dev't
Azerbaijan denies accusations on use of weapons prohibited by international law
Azerbaijani army fires back at Armenia firing points, which shelled Gubadli - MoD
Latest situation on battlefield on October 31
Azerbaijani Defense Ministry lists Armenian military equipment destroyed
Azerbaijani Tartar, Aghdam, and Aghjabedi districts come under artillery fire
Brazil's COVID-19 cases top 5.5 million with 159,477 deaths
24 dead in Izmir as magnitude 6.6 quake shakes Turkey’s west coast (UPDATE)
U.S. says Iranian hackers behind threatening emails accessed voter data
Israel's COVID-19 cases up by 587, tally reaches 313,701
Trump derides doctors as COVID surges, Biden says Trump 'giving up' on virus
Protesters clash with police over COVID-19 restrictions in Barcelona
U.S. COVID-19 cases surpass 9 mln -- Johns Hopkins University
COVID-19 remains public health emergency of international concern: WHO
Meeting of Jeyhun Bayramov with OSCE MG Co-Chairs and Armenian FM ends
Azerbaijan, Armenia reach new agreements following talks in Geneva
First Vice-President Mehriban Aliyeva offered condolences to relatives and loved ones of those killed as a result of earthquake in Izmir (PHOTO)
Azerbaijani army does not fire at civilians - MoD
Franck Muller founder engaged in illegal gold exploration in occupied territories of Azerbaijan – top official
Priests also fighting in ranks of Armenian Armed Forces (PHOTO)
Business confidence forecast to deteriorate in Georgia
Venture funds to be created in Uzbekistan to finance innovative developments
Trade turnover between Ukraine and Georgia decreases
Roads connecting number of Azerbaijan’s Agsu settlements reconstructed (PHOTO)
All climate resources must be mobilized to tackle global warming, UK Ambassador Laurie Bristow
Banking sector of Azerbaijan looks more stable than predicted - CBA chairman
Azerbaijan destroys another "Osa" anti-aircraft missile system of Armenian troops (VIDEO)
UK's coronavirus reproduction number drops slightly to between 1.1 and 1.3
Azerbaijani, Armenian FMs, OSCE MG Co-Chairs holding Karabakh talks in Geneva
Armenia's attack against Barda is crime against humanity perpetrated in widespread manner - Azerbaijani embassy in Canada
Azerbaijani embassy to Canada condemns speeches in House of Commons as they support war crimes
Armenia-inflicted damage on culture in occupied Azerbaijani territories would soon be irreversible - Modern Diplomacy report
Situation at front - under Azerbaijani Armed Forces’ control - Defense Ministry
Fire brigade extinguishes fire in Azerbaijan’s Goranboy due to Armenian Armed Forces’ artillery strikes
I don't know how efficient meetings are going to be now with regard to Armenian leadership - President Aliyev
President Ilham Aliyev's response call for Armenia: Recognize Nagorno-Karabakh
Azerbaijani PM phones Turkish VP regarding recent earthquake
Turkey already engaged in Karabakh settlement, whether Armenia likes it or not - President Aliyev
Azerbaijan destroys Armenian military equipment with precise strikes (VIDEO)
Armenia fires Smerch missile at Alasgarli village of Azerbaijani Tartar region
President Aliyev says Pashinyan lies about Pakistani, Turkish forces fighting for Azerbaijan
President Aliyev talks online footage of armed clashes, Azerbaijan's military potential
If Armenia got sanctions imposed on it as with Iraq, conflict would've been resolved long ago - president
Armenian side has no moral norms, no honor or dignity - President Ilham Aliyev
News about earthquake in Turkey’s Izmir saddens Azerbaijan – FM
Azerbaijan prepares new draft laws in renewable energy field
Central Bank of Azerbaijan reveals forecast for inflation in country
If someone willing to create second Armenian state, let them give away part of their own territory - Azerbaijani president
When three nuclear powers cannot exert pressure on Armenia, this raises questions - President Aliyev
Armenia sending convicts to fight in Karabakh conflict
Azerbaijani Embassy in Turkey opens hot line in connection with earthquake in Izmir
Combining efforts of Turkey and Russia to benefit region - President of Azerbaijan
What's happening now - results of Armenian PM Pashinyan's activity, says Azerbaijani president
President Ilham Aliyev expresses condolences to President Recep Tayyip Erdogan
Missile attacks on Barda by Armenian Armed Forces heavily damage local business entities (PHOTO)
Gold, silver prices in Azerbaijan down
Every human life is priceless, our losses are minimal - Azerbaijani president
If Azerbaijan agrees on political settlement, Armenia must withdraw from Kalbajar, Lachin and part of Aghdam immediately - president
Armenia says one thing to mediators, then does something completely different - President Aliyev
Azerbaijan destroys 2 more 'Smerch' rocket launchers of Armenian troops - MoD (VIDEO)
President Ilham Aliyev talks Armenian troops killed during recent military clashes
Georgian Tegeta motors opens “Toyota center” in Batumi
Armenia refuses to hand over body of 84-year-old Armenian to his family
Uzbekistan increases profitability of its textile exports
Kazakhstan's Nostrum Oil & Gas reveals revenues forecast for 9M2020
Meeting between FMs of Azerbaijan, Armenia kicks off in Geneva
Russian leading list of countries of main wine importers to Georgia
Azerbaijan shows footage of liberated Khudaferin village (VIDEO)
Provocation of Armenian delegate suppressed during EU video conference (PHOTO)
MFA receives no info on Azerbaijani citizens among quake casualties in Turkish Izmir yet
President of Turkmenistan made video statement at International Forum for Northern Economic Cooperation
US expert warns Europe, says Armenian terrorism must be stopped before too late
Azerbaijan reveals data on maritime cargo movement for 9M2020
Turkmenistan’s Oil Refineries extends tender for gasoline purchase
MyWayAirlines to conduct charter flight Tbilisi-Warsaw on November
Kazakhstan’s Nostrum increases 2020 oil forecast despite COVID-19 concerns
Georgia reveals volume of snail meat to be exported to Italy
Uzbekistan introduces automated system for monitoring liquefied gas supply to population
Revival of electronic coupons in Iran to hit low-income families - economist
Armenia attacks Azerbaijani settlements mainly from its territory
Azerbaijan puts several mercenaries brought by Armenia to Karabakh on int'l wanted list
Shelling of Barda by Armenian troops - flagrant crime against humanity, says Russian expert
Georgia establishes Agro Business Association
Azerbaijan's Constitutional Court appeals to constitutional courts of other countries
Uzbekistan ranks first in gold sales in 3Q2020 - World Gold Council
Estimated real gross domestic product declines in Georgia
Time deposits volume surges in Kazakhstan year-on-year
Turnover on payment cards in Azerbaijan increases
Turkmenistan's Turkmenbashi Oil Refinery to increase oil refining depth
Number of people infected with COVID-19 in Iran exceeds 600,000
Kazakhstan's Almaty launches production of environmentally-friendly batteries
Azerbaijani president instructs to assess damage caused to Azerbaijan by Armenia – aide to president
Kazakhstan's oil refineries decrease oil refining volumes as COVID-19 pandemic hits demand
Armenian Armed Forces attacked strategic targets in Azerbaijan - Prosecutor General
Azerbaijan puts high-ranking Armenian officials on int’l wanted list
All news