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Egypt has announced a rise in the prices of a wide range of fuel products, Reuters reported. The price hike comes just four days before the IMF conducts its third review of Egypt’s loan program.
According to Bloomberg, rates for gasoline, diesel, kerosene, and a specific type of fuel oil have all been increased. However, fuel oil used for electricity generation and food-related industries remains exempt from this hike. The pricing committee convenes every quarter to set fuel prices at Egypt’s pumps.
The official gazette, citing the petroleum ministry, reported that petrol prices have surged by up to 15% per litre. Specifically, 80 octane petrol now costs 12.25 Egyptian pounds ($0.25), 92 octane – 13.75 pounds, and 95 octane has risen to 15 pounds.
Diesel experienced the most significant increase, climbing to 11.50 Egyptian pounds ($0.24) from the previous 10 pounds.
This marks the second fuel price increase since the IMF expanded its loan program by $5 billion in March. As part of the agreement with the IMF, Egypt has committed to reducing fuel subsidies.
Prime Minister Mostafa Madbouly indicated that the prices of petroleum products would continue to rise gradually until the end of 2025. He emphasised that the government could no longer shoulder the burden of increasing fuel consumption.
In an April report, the IMF estimated that Egypt’s expenditure on fuel subsidies would reach $6.85 billion for the fiscal year 2024/25 and decrease to $5.07 billion in 2025/26.
The IMF’s approval for the third review of the expanded loan program was set for July 10 but rescheduled to July 29. The delay was attributed to the finalisation of specific policy details. IMF spokesperson declined to elaborate on the matter.
Following the review, the IMF is anticipated to disburse an additional $820 million to Egypt.
