Cairo - Mubasher: Egypt will not fully eliminate petroleum products subsidies, but aims to reduce subsidies within three years, Minister of Petroleum Tarek El-Molla said.

The plan of subsidies reduction will conclude in 2019, with the resumption of fuel subsidies until then, El-Molla clarified to Shorouk newspaper.

In response to the terms of a $12 billion loan by the International Monetary Fund, Egypt had started decreasing subsidies and liberalizing the exchange rate in November 2016.

A second wave of reduction will take place at the beginning of fiscal year 2017/2018, in which Egypt aims to decrease petroleum products subsidies to EGP 140 billion - EGP 150 billion ($7.7 billion - $8.3 billion) with an increase between 40% and 50%.

Targeted petroleum products subsidies amount to EGP 101.272 billion in FY16/17 increasing from EGP 51.045 billion in the previous fiscal year 2015/2016.