Egyptian National Railways to repay EGP 6B debt to EGPC
Updated 9/2/2024 1:25:00 PM
Arab Finance: The Egyptian National Railways (ENR) has reached an agreement with the Egyptian General Petroleum Corporation (EGPC) to settle EGP 6 billion in debt over the next five years, Asharq Business reported, citing a government official.
This debt has been accumulating since 2016 due to economic reform measures, including the increase in petroleum derivative prices, which heavily impacted the railway sector reliant on diesel.
The ENR has been consistently paying its monthly fuel bills, despite the recent fuel price hikes in late July, the official said.
The official noted that the increase in service prices, which was applied in early August with metro and railway ticket prices rising by 12.5% to 33%, has enabled the authority to manage higher fuel costs.
The ENR currently operates over 850 trips daily, covering up to 1,000 kilometers.
Each train consumes 4 to 5 liters of diesel per kilometer, along with additional oil and grease requirements essential for operations.
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