Egypt has increased fuel prices by up to 15% effective immediately, marking the first hike in 2025, as the government seeks to reduce fuel subsidies as required by the International Monetary Fund’s (IMF) $8 billion support package.
The price increases range from 11.76% to 14.81% across various fuel products, including diesel, gasoline, and butane cooking gas, with diesel fuel rising by 2 Egyptian pounds to 15.50 pounds per liter and gasoline prices increasing by as much as 14.5% depending on the grade.
The move comes almost a month after the IMF approved the disbursement of $1.2 billion to Egypt following completion of the fourth review of its loan program signed last year.
Egypt has taken on back-to-back financing facilities with the IMF since 2016, with the lender pushing the government to cut fuel, electricity, and food subsidies while expanding social safety nets.
Despite having raised prices three times in 2024, Egypt still spends around 10 billion Egyptian pounds ($197.71 million) on fuel subsidies each month, and the government aims to lower energy subsidies to reach cost recovery by December.
The price hike is part of Egypt’s efforts to address its economic woes, including a sharp decline in revenues from the Suez Canal and diminishing local natural gas production, which has left the country strapped for dollars needed to import essential goods.
