Egypt has increased prices on a wide range of fuel products, marking the second hike this year, as part of its efforts to reduce subsidies and ease the budget deficit. The price increases, ranging from 10.5% to 12.9%, affect various petroleum products, including diesel and gasoline.
Despite the hike, the government will freeze domestic fuel prices for at least a year, citing local, regional, and global developments.
The price of diesel, a crucial commodity in the country, has been raised by 2 Egyptian pounds ($0.0421) to 17.50 pounds per liter from 15.50 pounds.
Gasoline prices have also increased, with 80 octane gasoline rising to 17.75 pounds per liter, 92 octane to 19.25 pounds, and 95 octane to 21 pounds.
This move aligns with Egypt’s commitment to lowering its energy subsidies and bringing domestic prices in line with actual costs by December, as part of an $8 billion loan agreement with the International Monetary Fund (IMF).
The IMF has pushed the government to cut fuel, electricity, and food subsidies while expanding social safety nets.
The Egyptian government has emphasized its commitment to subsidizing diesel, even if it means raising prices of other fuels above cost to help cover the subsidy.
The current account deficit stood at $2.2 billion in the second quarter, with imports of oil products rising to $500 million from $400 million a year earlier.
