Egypt Plans $4.2 Billion Cut in Energy Subsidy, Al-Masry Says

Egypt’s government drafted a plan to reduce energy subsidies by 25.5 billion pounds ($4.2 billion), al-Masry al-Youm newspaper reported, citing an unidentified official.

Prime Minister Hisham Qandil submitted the proposal to President Mohamed Mursi, and talks between the two leaders yesterday focused on whether to implement the subsidy cut next month or wait until after parliamentary elections, the official said, according to the newspaper.

Egypt is seeking a $4.8 billion loan from the International Monetary Fund. The government needs to start cutting subsidies because the IMF is waiting for tangible steps amid negotiations for the loan, the official said.

To contact the reporter on this story: Tarek El-Tablawy in Cairo at teltabalwy@bloomberg.net.

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net.