Egypt has announced a 15% increase in petrol prices as part of reforms requested by the IMF to secure a $5 billion loan. The Egyptian petroleum ministry stated the price hike would take effect immediately. This move comes amidst Egypt’s worst economic crisis, marked by soaring inflation and multiple currency devaluations.
Inflation reached nearly 40% last year but has since decreased to 27.5% in June. The IMF’s conditions for the loan include adopting a liberal exchange regime, cutting government spending, and promoting private investment. These reforms are crucial as Egypt faces regional tensions, with conflicts in Gaza, Sudan, and attacks on Red Sea shipping by Yemen’s Houthi rebels.
The Suez Canal, a vital trade route connecting Asia and Europe, saw a 23.4% revenue drop in the last fiscal year. Despite these challenges, Egypt is striving to stabilize its economy by implementing necessary reforms and securing international assistance.