By Mohamed Adel
Sales of 95 octane petrol have plunged three days after the government removed subsidies, causing the price at the pump to double. Many in the industry expect 95 octane users to switch to the lower performance 92 octane fuel which is still subsidised.
“The price of 95 octane petrol is now EGP 5.85 per litre, putting its sale on hold and putting more pressure on 92 octane petrol, which is priced at EGP 1.85 per litre,” said the manager of a Mobil petrol station.
Many consumers are avoiding purchasing the higher performance fuel altogether, leading to a drop in sales at Mobil petrol stations.
“We’ve decreased the amount of 95 octane being sold in this station and we’re expecting an increase in the sale of 92 octane,” said the manager of a Misr Petroleum gas station, Zin El Abedin.
He added that he feared that a sharp increase in demand for 92 octane petrol could lead to yet another fuel crisis. In preparation, he said, “each Misr Petroleum station has doubled its stock of 92 octane, from 20,000 litres to 40,000 litres.”
The manager of one Shell petrol station said, “the government did not study the issue in detail before making the decision to end the subsidy,” claiming that lifting subsidies off 95 octane fuel will not assist in the redistribution of the surplus created by removing the subsidies as most 95 octane users would simply switch to 92 0ctane.
