No subsidized gas without smart card after June 15

No subsidized gas without smart card after June 15

Starting June 15, customers without government-issued smart cards will not be able to purchase subsidized fuel, a finance ministry official announced Sunday.

At present, consumers can have unresticted access to subsidized gasoline, although prices increased in July 2014.

Once the new rules are put into place, gas stations will have to request smart cards from both public and private vehicles. Agricultural machinery, tuk-tuks and rickshaws will be included in the future.

Deputy Finance Minster Amr Badawi said the smart card system will save the government billions of pounds, according to state news agency MENA.

In recent years, fuel subsidy expenses have exceeded LE100 billion, at a time when the government has been running an annual deficit and racking up debt.

The smart card program was originally intended to come into effect in July 2013, but has been repeatedly delayed.

Officials have denied that limitations on how much subsidized fuel consumers can buy will be introduced along with the cards, at least initially. Instead, they say, the computerized cards will be used to curb smuggling by tracking fuel along the entire supply chain — from government depots to individual service stations and consumers.

An estimated 15-20 percent of government subsidized fuel goes missing, smuggled to neighboring countries or passing ships due to the difference between prices in Egypt and on the international market.

If the smart card program succeeds, it will allow the government to spot discrepancies between the amount of subsidized fuel it provides and the amount reaching consumers, and identify exactly where it goes missing.

Getting a smart card

For months, officials have been urging vehicle owners to register for their cards before it’s too late, directing them to an online application form, which required applicants to enter data from their driver’s licenses and vehicle registration cards. As of Sunday afternoon, the online application was temporarily suspended, and applicants were requested to call 19680 or 19683 for information.