03:21 PM
Wednesday 18 March 2020
–
I wrote – Yasmine Selim:
HC investment bank expected that the Egyptian government will reduce the price of gasoline by the maximum reduction of the automatic pricing mechanism for fuel prices, which is 10% of the current price.
Monit Doss, a macroeconomic and banking analyst and HC Securities and Investment Company, said in a press statement today, Wednesday: “We believe that the arrival of Brent price of 34 dollars a barrel will allow the Egyptian government to reduce the price of gasoline by a maximum reduction of 10% every quarter.”
According to the automatic pricing mechanism for fuel prices, the government reviews prices every 3 months, and it can reduce or raise prices by 10% from the current price, or install them at the current price.
HC Bank analyst said that, by applying the average Bloomberg economists’ forecast for 2021 for the price of Brent crude at $ 39 a barrel, this would allow the Egyptian government to further reduce the price of 92 gasoline and diesel.
She added that this would reflect positively on containing inflationary pressures.
In the past weeks, oil prices have tumbled, due to declining demand due to the spread of the Corona virus, as well as Saudi Arabia, the world’s largest exporter, who said it would raise production and lower prices.
DOS expects that the value of the Egyptian pound will fall against the dollar by 4% from its current levels by December, higher than previous expectations of “HC” which came at 3%.
– .
