Egypt has raised fuel prices across a wide range of products, marking the third price hike this year, the Ministry of Petroleum announced early Friday. The decision reflects the government’s continued effort to cut back on fuel subsidies amid an ongoing economic crisis.
Diesel prices, which are widely used across the country, rose by 17%, increasing from 11.50 Egyptian pounds ($0.2779) per liter to 13.50 pounds. Gasoline prices also saw a significant rise, with the increase varying between 11% and 13% depending on the grade. The price of 80-octane gasoline increased to 13.75 pounds per liter, 92-octane rose to 15.25 pounds, and 95-octane reached 17 pounds.
Prime Minister Mostafa Madbouly had previously announced in July that fuel prices would continue to rise gradually until the end of 2025. He emphasized that the government could no longer bear the financial strain of fuel subsidies due to rising consumption.
Despite typically meeting every quarter, the government’s fuel pricing committee announced that its next review will take place in six months.
This is the third time in 2024 that Egypt has raised fuel prices, following increases in March and July. The hikes are part of a broader economic reform program tied to a bailout deal with the International Monetary Fund (IMF). The government aims to completely phase out fuel subsidies, which constitute a significant portion of its budget, by 2025, according to government spokesperson Mohamed el-Homossan.
The latest price increases come as Egypt grapples with one of its most severe economic crises in recent decades. Foreign debt, inflation, and the devaluation of the Egyptian pound have worsened the country’s economic challenges. Since January 2022, the Egyptian pound has lost around 50% of its value against the US dollar. As the cost of living continues to rise, nearly 30% of Egyptians are living below the poverty line, according to official data.
The government’s move to reduce subsidies and raise fuel prices highlights the difficult choices it faces in managing its strained budget while addressing the needs of the population amid worsening economic conditions.
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