Egypt implemented a significant increase in fuel prices just days before the International Monetary Fund (IMF) conducts a crucial review of its loan programme for the country. The official gazette announced that prices of petrol and diesel went up, with 80 octane reaching 12.25 Egyptian pounds ($0.25) per litre, 92 octane at 13.75 pounds, and 95 octane at 15 pounds. Diesel prices also saw a notable increase to 11.50 Egyptian pounds ($0.24) from 10 pounds.
The government’s decision to raise fuel prices is in line with its commitment to reduce fuel subsidies, as stipulated by the IMF loan agreement. Prime Minister Mostafa Madbouly stated that prices will continue to gradually rise until 2025 due to the unsustainable burden on the government. The IMF is expected to disburse $820 million to Egypt following the completion of the review, which was delayed to July 29 for the finalization of policy details.
With fuel subsidies estimated to cost billions, Egypt is taking steps to address its economic challenges and meet the IMF’s conditions. The impact of these price hikes on the Egyptian population remains to be seen.
Reuters