Egypt raised gasoline prices by one pound to 11 pounds for 80 gasoline (French)

The Official Gazette reported that Egypt raised the prices of a wide range of fuel products on Friday, as part of implementing a pledge it made to the International Monetary Fund more than a year ago as part of an agreement to obtain financial support worth $3 billion.

It quoted the Ministry of Petroleum as saying that the Fuel Pricing Committee decided early this morning to increase gasoline prices by one pound ($0.02) per liter to become

  • 11 pounds for 80 gasoline.

  • 12.50 pounds for 92 gasoline.

  • 13.50 pounds for 95 gasoline.

The pricing committee was raised

  • The price of diesel rose to 10 pounds from 8.25 pounds.

  • The price of a cooking gas cylinder for 100 pounds is from 75 pounds.

The committee determined

  • The price of diesel is at 7,500 pounds per ton for a group of sectors.

  • It kept diesel prices unchanged at 1,500 pounds per ton for food industries.

  •   It also kept the price of diesel at 2,500 pounds per ton for electricity and energy production companies that sell their electricity production to companies affiliated with the Ministry of Electricity.

International market prices

In a letter of intent signed in November 2022, Egypt said it would allow the prices of most fuel products to rise, bringing domestic prices more in line with prices in international energy markets.

It also pledged to make up for a slowdown in such increases over the previous year, but then raised prices only once in March 2023.

The IMF agreement faltered last year due to Egypt's failure to proceed with raising prices and other commitments, including allowing its currency to move according to market mechanisms, in addition to selling state-owned assets and reducing the government's role in the economy.

Expand financial support

This month, the International Monetary Fund expanded the financial support agreement to $8 billion to help Egypt overcome the shocks to its economy due to Israel’s war on Gaza, after the government renewed its commitment to reform measures, including a sharp devaluation of the currency.

The Executive Board of the IMF has not yet met to approve the new agreement.

This international fund says that subsidizing gasoline prices mainly benefits the rich at the expense of the poor, most of whom do not own cars.

Inflation in Egypt recorded unprecedented levels in 2023, as prices jumped 33.7%.

Source: Reuters