Egypt petrol shortage causes long queues amid fears of price hikes
CAIRO - Long queues snaked outside empty petrol stations in Cairo and other Egyptian cities on Thursday, as worried motorists waited for new deliveries amid fears of price hikes and longer-term scarcity.
Industry professionals say the situation has shot fuel prices up on the black market, where some motorists have no choice but to go, amid insufficient public transport alternatives.
The queues have brought more traffic to Cairo's notoriously busy streets, sparking incidents of road rage, according to press reports.
"There's no fuel or diesel at all. We wait five hours to fill the car and then we can start working," said taxi driver Rashed Said.
"I only found fuel at this petrol station," said Maged, another driver. "This has been the case since yesterday," he said pointing to the long queues.
Fuel is highly subsidised in Egypt to maintain the price of 15 US cents (11 euro cents) per litre of 80 octane petrol, the cheapest quality.
The sector has been under pressure for months due to a fall in foreign reserves and an increase in the budget deficit, threatening subsidies.
In mid-January, the country suffered a shortage for several days, made worse by rumours of price hikes that sparked a rush on petrol stations.
Minister of International Cooperation Fayza Abul Naga sought to calm fears, telling the press that "the government has no intention of raising fuel prices."
Petroleum Minister Mohammed Abdullah Ghorab said the situation was due to a "lack of confidence" by consumers, insisting that petrol stocks are sufficient.
Amr Mustafa, deputy head of the General Petroleum Authority, said smugglers control 15 to 20 percent of petrol products available on the market, the independent daily Al-Masry Al-Youm quoted him as saying.
Egypt's economy has been in crisis since a popular uprising last year which toppled President Hosni Mubarak, marked by a drop in tourism and foreign investment.
Cairo is currently in talks with the International Monetary Fund over a $3.2 billion loan to ease the crisis.