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Egypt Reduces Jet Fuel Prices to Boost Aviation, Tourism Sectors

A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]
A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]
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Egypt Reduces Jet Fuel Prices to Boost Aviation, Tourism Sectors

A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]
A worker gesturing for cars to move as others fill up at a petrol station in Cairo, Egypt on June 29, 2017 [KHALED DESOUKI/Getty Images]

Egypt will reduce jet fuel prices by 15 cents per gallon from January 21 until the end of 2021 to support the tourism and aviation sectors amid challenges posed by COVID-19 pandemic.

The decision came during the fourth meeting between Minister of Petroleum and Mineral Resources Tarek El Molla, Minister of Tourism and Antiquities Khaled Al-Anani, and Minister of Civil Aviation Mohamed Manar to discuss ways to boost the affected sectors.

For his part, Anani hailed the initiative, saying it will boost tourism in Egypt by motivating international companies to increase their flights.

Also, Manar praised the petroleum sector’s effort and support in providing fuel to all Egypt’s airports.

In a related context, Egypt and the International Islamic Trade Finance Corporation (ITFC) signed a finance cooperation program for 2021, providing the country with integrated financing solutions worth $1.1 billion.

The funds come as part of the $3 billion agreement concluded between the Ministry of International Cooperation and the ITFC in 2018.

The signing ceremony was attended by Minister of Planning and Economic Development and Egypt’s Governor at the Islamic Development Bank Group Hala El-Said, Minister of Petroleum and Mineral Resources Tarek El Molla, Minister of Supply and Internal Trade Aly Meselhi, Minister of International Cooperation Rania Al-Mashat, and Minister of Trade and Industry Nevine Gamea.

The program was signed by ITFC CEO Hani Salem Sonbol, Executive Vice President of the Egyptian General Petroleum Corporation (EGPC) Ashraf Abdullah, and Vice-Chairperson of the General Authority for Supply Commodities (GASC) Ahmed Youssef.

According to Molla, the five agreements have a total value of $9.2 billion, including the fifth framework agreement signed at the end of January 2018 at a value of $3 billion. For the financing of basic commodities, 16 financing operations amounting to $2.225 billion were approved within the agreement’s framework.

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Oil Retreats Slightly after Boost from US Crude Draw, Russia Sanctions

Oil Retreats Slightly after Boost from US Crude Draw, Russia Sanctions
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Oil Retreats Slightly after Boost from US Crude Draw, Russia Sanctions

Oil Retreats Slightly after Boost from US Crude Draw, Russia Sanctions

Oil prices fell back slightly on Thursday, a day after settling at multi-month highs on the latest US sanctions on Russia and a larger-than-forecast fall in US crude stocks.

Brent crude futures were down 37 cents, or 0.5%, to $81.66 per barrel by 1042 GMT, after rising 2.6% in the previous session to their highest since July 26 last year.

US West Texas Intermediate crude futures slid 35 cents, or 0.4%, to $79.69 a barrel, after gaining 3.3% on Wednesday to their highest since July 19.

US crude oil stocks fell last week to their lowest since April 2022 as exports rose and imports fell, the Energy Information Administration (EIA) said on Wednesday.

The 2 million-barrel draw was more than the 992,000-barrel decline analysts had expected in a Reuters poll.

The drop added to a tightened global supply outlook after the US imposed broader sanctions on Russian oil producers and tankers. The sanctions have sent Moscow's top customers scouring the globe for replacement barrels, while shipping rates have surged too.

The Biden administration on Wednesday imposed hundreds of additional sanctions targeting Russia's military industrial base and evasion schemes.

On Monday, Donald Trump will be sworn in for his second term as US president.

With oil at its current levels, that may lead to clashes with the Organization of the Petroleum Exporting Countries (OPEC) if Trump follows his previous playbook. During his first term he demanded the producer group rein in prices whenever Brent climbed to around $80.

OPEC and its allies, which collectively as OPEC+ have been curtailing output over the past two years, are likely to be cautious about increasing supply despite the recent price rally, said Commodity Context founder Rory Johnston, according to Reuters.

"The producer group has had its optimism dashed so frequently over the past year that it is likely to err on the side of caution before beginning the cut-easing process," Johnston said.

Limiting oil's gains, Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners, according to an official.

On the demand front, global oil expanded by 1.2 million barrels per day in the first two weeks in 2025 from the same period a year earlier, slightly below expectations, JPMorgan analysts wrote in a note.

The analysts expect oil demand to grow by 1.4 million bpd year on year in coming weeks, driven by heightened travel activities in India, where a huge festival gathering is taking place, as well as by travel for Lunar New Year celebrations in China at the end of January.

Some investors are also eying potential interest rate cuts by the US Federal Reserve in 2025 following data on an easing in core US inflation - which could lend support to economic activities and energy consumption.