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Egypt hikes fuel prices to secure IMF loan tranche | Business News

Egypt hikes fuel prices to secure IMF loan tranche | Business News

Egypt Raises Fuel Prices to Fulfill IMF Condition

Egypt is set to increase petrol prices by up to 15 percent starting Friday, marking the second price hike in four months. This move is in compliance with an economic reform requirement from the International Monetary Fund (IMF) to access new loans amounting to millions of dollars.

The Ministry of Petroleum and Mineral Resources in Egypt announced the fuel price increase, with petrol prices set to range between 12.25 and 15 Egyptian pounds per litre. Additionally, diesel prices will also rise from 10 to 11.50 Egyptian pounds.

Lifting Fuel Subsidies

As part of the IMF bailout deal, Egypt is phasing out fuel subsidies to alleviate strain on its budget. This decision aligns with the goal to eliminate fuel subsidies completely by the end of 2025, as stated by government spokesperson Mohamed el-Homossan.

Amidst economic challenges, Egypt faces a severe crisis, with high inflation rates and increasing foreign debt. To stabilize the economy, the IMF has urged Egypt to implement extensive reforms, including a shift to a liberal exchange regime and encouraging private investment.

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