(MENAFN) Moody's Investors Service suggested that Egypt's fuel price hike is credit positive, as the increase is part of the economic reform program launched in the country.
The price hike is a drive for Egypt to reach agreed target for a fiscal deficit of 8.4 percent of GDP in fiscal 2018/2019 from the 9.8 percent of GDP seen in 2017/2018, as Moody's showed in its report.
The report also suggested that the new prices are to encourage a fall in the overall subsidy bill from its forecast of 7.5 percent of GDP this year to 6.5 percent in 2019.
Eni's CEO Claudio Descalzi also lauded the successful cooperation with the Egyptian petroleum sector, adding that 70 percent of the Italian firm's investments are allocated in Egypt.
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