The government is unlikely to succeed in controlling anticipated price jumps in markets, goods, and services vulnerable to such abnormalities in the wake of petroleum subsidy cuts in the new budget, unless it takes measure to protect the poor
The government is unlikely to succeed in controlling anticipated price jumps in markets, goods, and services vulnerable to such abnormalities in the wake of petroleum subsidy cuts in the new budget, unless it takes measure to protect the poor, said
The government cut petroleum subsidies to
The government, however, has not revealed the timeframe for increasing petroleum derivative prices like diesel, gasoline, fuel oil, and gas, in a move to reduce the budget deficit to
According to Al-Faky, the government should not shy away from "inevitable" petroleum subsidy reforms, but they must take rapid measures to control market prices. This may take place through supporting and developing government consumer cooperatives and making all services and goods available to citizens at competitive prices to protect them from inflation.
But Al-Faky expects prices to respond speedily to the removal of energy subsidies. This will be exacerbated, he said, by government slowness in protecting the poor from projected increases by adjusting market prices. This may take place either via government consumer complexes or by taking measures to increase production rates, threatening an increase hunger among the poor and middle classes, he said.
Energy subsidies require approximately
"The government will not be able to control potential price jumps for all goods and services on the market against a backdrop of energy subsidy cuts in the FY 2014/2015 budget," said
She said: "The government may succeed in adjusting prices by increasing production and facilitating measures for producers, supporting farmers, and making all goods and services available on the market. Storage and transportation systems must also be reformed so as not to increase prices."
Al-Sholkamy added: "It is possible for the government to distribute coupons to citizens in order for them to meet their most basic needs at discounted prices."
According to Al-Sholkamy: "All basic goods and services are susceptible to price jumps, including fruits, vegetables, rice, oil, and sugar, when energy subsidies are cut, and the government has to race against the clock to improve production in
"Units to collect dairy in the villages are implementing an ingenious solution that must be support by the government to allow all dairy producers to sell at competitive prices on the market," Al-Sholkamy added.
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