Egypt issues gasoil importation tenders
The Egyptian state oil firm has issued a tender to purchase around 500,000 tons of gasoil for delivery into Mediterranean ports between January and March next year according to a tender document. The tender is for 15 cargoes to be delivered in Alexandria, Egypt’s second largest city and El Dekheila. Bidding ends on the 18th of this month.
Egypt is also seeking around 600,000 tons of gasoil for delivery into the Red Sea port of Suez, making total import requirements in the first quarter of 2013 equivalent to around 1.1 million tons of gasoil.
The country is struggling to meet the high demands but recent crisis are hampering its efforts as the economy slows down. The current political situation will determine the outcome of the tenders according to experts while bargain hunters continue to look for immediate opportunities as soon as the crisis becomes less tense. The country’s benchmark index lost 1.4%, getting close to last week’s four-month low as tensions between the judiciary and the executive arms of government continue to rise.
A number of contracts signed with foreign countries responsible for recent investment into Egypt have also been cancelled or postponed. Many foreign businessmen and investors have postponed planned trips to Egypt, leading many to fear that Egypt’s exports will decrease in light of the country’s internal political divisions.
People in the business sector are beginning to get worried despite government’s reassurances. Khalid Ibrahim, president of the Engineering Export Council of Egypt, said “the current situation will affect the entire country and will have a long-term negative effect on the country’s exports.”
The government is hoping that the IMF loan will ease the economic hardship in the country but many believe that the economy is almost paralyzed.