The Gas Investors Association called for the need to swiftly lift subsidies on butane cylinders and direct it to the beneficiaries through distributing by ration cards in order to establish justice in this respect and to open the door of imports to the private sector.
Dr. Mohammed Saad Eddin, the President of the Association, said the association discussed with the government ways to provide the cylinders for fear of the repetition of the crisis of last winter when there was a significant shortage of cylinders, which led to a hike in their prices. We are trying to avoid this in the coming period, he said.
This will be done through increasing the storage capacities for 15 days rather than one week to avoid a crisis resulting from the delay in the arrival of a vessel transporting gas, he said, adding that the size of annual consumption amounts to 4.4 million tons, at a rate of one million cylinders per day.
He added that there is no reason for the rise in prices of these cylinders, which currently ranges between 30 and 50 pounds. There is no explanation except the greed of traders, he said, noting that the price of one cylinder is currently 8 pounds in warehouses.
He added that if the government lifts the subsidies on the cylinders the private sector will demand opening imports and, therefore, their prices will be linked to world prices. He pointed out to 45 factories operating in filling up butane gas cylinders whose investment value is of not less than 10 billion pounds.
