CAIRO: Egypt increased prices across a wide range of fuel products on Friday, marking the country’s second such adjustment this year.
The government announced it would freeze domestic fuel prices for at least one year following this latest round of increases. Egypt’s petroleum ministry cited local, regional, and global developments as reasons for the price freeze commitment.
The latest increases range from 10.5% to 12.9% on various petroleum products, following a nearly 15% hike implemented in April.
The ministry confirmed the petroleum sector would continue operating its refineries at full capacity while paying arrears to partners.
Diesel prices, representing one of Egypt’s most commonly used fuels, increased by 2 Egyptian pounds to 17.50 pounds per litre from 15.50 pounds.
The International Monetary Fund stated in March that Egypt remained committed to lowering energy subsidies and aligning domestic prices with actual costs by December.
The government affirmed it would continue subsidising diesel even if that required raising prices of other fuels above cost to cover the subsidy.
The IMF has encouraged Egypt to reduce fuel, electricity, and food subsidies while expanding social safety nets under an $8 billion loan programme.
Egypt’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.
Gasoline prices increased by up to 12.9%, with 80 octane rising to 17.75 pounds per litre, 92 octane to 19.25 pounds, and 95 octane to 21 pounds. – Reuters
