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Page added on March 17, 2013
Egypt warns against hoarding diesel
The Egyptian government warned citizens of the dangers of hoarding large quantities of diesel at home on Sunday – a symptom of the shortages afflicting an economy in crisis.
Shortages of subsidised diesel have paralysed transport in parts of Egypt, as the government faces pressure to curb energy subsidies that swallow up a fifth of its budget.
Bassem Ouda, minister of supply and internal trade, urged citizens to avoid actions exacerbating fuel supply problems, including what he described as a current trend for “storing massive quantities” of diesel indoors.
“I warn that this is very dangerous. If, God forbid, a problem happened in a home, or a fire, the results will be bad. We appeal to citizens to avoid this,” he said during an interview with state-run Radio Masr.
Dwindling supplies of state-subsidised diesel have led to long queues at petrol stations still getting fuel deliveries.
Egypt must commit to reforming the subsidy system if it is to secure a $4.8 billion loan from the International Monetary Fund. An IMF delegation began talks in Cairo on Sunday.
The government plans to implement a subsidised fuel rationing system at the beginning of July.
6 Comments on "Egypt warns against hoarding diesel"
DC on Sun, 17th Mar 2013 9:05 pm
Oh, I see whats happening here. The IMF mafia is dangling a 5bil loan in front of Eygpt, but in return, they have to cut fuel subsides. So that’s the real story behind the story. Wonder what else the IMF is demanding Egypt stop doing as well. Cant be just fuel subsidies that they are trying to get rid of.
Im curious though, does the IMF consider the 100’s of billions in taxpayer subsidies given to its private for-profit energy cartels in the US\EU to be grounds for refusing assistance as well? Not that anyone should ever take an IMF ‘loan’, those things are the kiss of death, but still.
How about this.
We get rid of the following.
-The IMF
-Subsidies for Corporate oil firms. Direct and indirect. IE no more auto or airline bailouts.
-Eliminate end user subsides for fuel once the first two conditions are met.
Go a long way towards fixing a few things….
BillT on Sun, 17th Mar 2013 11:05 pm
Diesel is a lot safer than gasoline in homes. Many people in the US have 270 gallon fuel oil tanks in their basements or just outside their wall near the furnace. Fuel oil is the same as diesel.
Now, storing gasoline in quantity is not smart, but how many homes have at least two gas tanks in heir garage with 10 -20 gallons each?
Then there is natural gas which is even more explosive…lol.
Yep, definitely a ‘control’ tactic of the government on behalf of the banksters.
Kenz300 on Sun, 17th Mar 2013 11:29 pm
Fuel subsidies distort demand for the product.
When people have to pay the true price for gas or diesel it will begin to impact their behavior.
They will decide to walk more, ride a bicycle more, take mass transit more or get a very fuel efficient means of transportation. Price has a way to changing behaviors. People that once thought they would not ride a bicycle all of a sudden go out and get a bicycle in order to save some money.
As the price of oil continues to rise alternatives like electric, flex-fuel, hybrid, CNG, LNG and hydrogen fueled vehicles all begin to look better.
The era of cheap oil is over.
Dmyers on Sun, 17th Mar 2013 11:31 pm
Right folks, this idea of storing lots of diesel fuel at home is not a good idea. Take this from a consumer advocate. First, this stuff is highly flammable and even explosive. You know, sparks, things like that that happen by surprise…well,..you never know what might happen.
Then, there are the fumes coming from what I can only believe are not too perfect containers of refined diesel fuel over there in the corner, next to the china and crystal. Give your kids a chance. Don’t let them breath that.
Stocking up on the subsidized stuff is a good idea. I believe in buying in bulk. I’m a member of Sam’s Club. But look, the subsidy is going away, and you’re going to have to pay full price. If you’ll pony up, the shortage goes away. Don’t kill your family for one last cheap trip to the Red Sea Riviera.
patel moe on Mon, 18th Mar 2013 2:49 am
make a north african union like the euro nations and then economy will rock.
BillT on Mon, 18th Mar 2013 1:54 pm
patel, I hope that was a sarcastic remark.