Egypt has increased prices on a wide range of fuel products for the second time this year, according to a notice published in the country’s official gazette on Friday. The move aligns with government efforts to curb subsidies and reduce the national budget deficit.
The price adjustments — ranging from 10.5% to 12.9% across petroleum products — follow an earlier hike of nearly 15% in April. Egypt’s petroleum ministry announced that domestic fuel prices would now be frozen for at least a year, citing local, regional, and global economic conditions.
The ministry also stated that the petroleum sector will maintain full refinery operations, settle outstanding payments to partners, and introduce incentives aimed at increasing production and cutting import costs.
Diesel, one of Egypt’s most widely used fuels, rose by 2 Egyptian pounds ($0.0421) to 17.50 pounds per litre, up from 15.50 pounds. Gasoline prices also increased by as much as 12.7%, with 80-octane now at 17.75 pounds per litre, 92-octane at 19.25 pounds, and 95-octane at 21 pounds.
The government remains committed to gradually phasing out energy subsidies and aligning domestic prices with actual costs by December, as part of an International Monetary Fund (IMF) program. The IMF, which approved an $8 billion loan to Egypt, has urged the government to scale back subsidies on fuel, electricity, and food while strengthening social safety nets.
According to Egypt’s central bank, the country’s current account deficit reached $2.2 billion in the second quarter, with oil product imports climbing to $500 million from $400 million a year earlier. Despite subsidy reductions, the government said it will continue subsidizing diesel, even if that requires raising prices on other fuels to offset costs.
Source:Africa Publicity
