Egypt’s Diesel Shortage Creates Combustible Situation

Egypt’s fuel situation is heading toward a crisis. Egypt heavily depends on diesel for production across all its industries. However, Egyptians have experienced severe diesel shortages since 2012, which have caused long lines at fuel stations, increased food costs and electricity blackouts.

Meanwhile, the government has announced that it is canceling its fuel subsidies for heavy industry. Over the next few years, it will phase out subsidies for cars and electricity. Egyptian analysts are saying this could save the government at least $15 billion, but it will also cause fuel prices to shoot up. Prices on everyday expenditures will rise significantly, which could lead to civil unrest.

Egypt produces 22,000 tons of diesel every day, but demand is 40,000 tons. Egyptian business analyst Ahmed Al Asar says this creates two problems. First, Egypt has to borrow $10 billion every year to buy fuel. Second, because of security problems, a large amount of diesel is smuggled out of Egypt or sold on the black market.

Cairo has sought extra supplies from Arab oil and gas producers like Qatar and Iraq. According to local media reports, however, those negotiations have stalled due to payment-related disagreements.

Egypt still needs to import nearly half of its fuel. Who will it turn to next? Bible prophecy in Daniel 11 shows that Egypt will ally with Iran. Iran is one of the world’s largest oil producers. It also heavily influences Iraq and Libya, which are also major oil exporters.

Egypt’s ruling Muslim Brotherhood has strong ties in these Islamic nations. As time goes on, Egypt is sharing more and more of Iran’s Islamist ideology. To learn more about this developing Islamic alliance, read our free booklet The King of the South.