Egypt has announced another round of fuel price increases, according to the country’s official newspaper, marking the second such hike this year as authorities move to reduce subsidies and narrow the national budget deficit.
The latest increase, ranging between 10.5% and 12.9%, comes after an earlier 15% jump in April. The Ministry of Petroleum stated that fuel prices will now be frozen for at least a year following this adjustment, citing ongoing local, regional, and global challenges.
Officials added that Egypt’s oil sector will continue operating refineries at full capacity, settle outstanding debts with partners, and offer incentives to enhance local production while minimizing import expenses.
Diesel, one of the most widely used fuels in the country, saw a rise of 2 Egyptian pounds per liter, now priced at 17.50 pounds, up from 15.50.
The government reaffirmed its commitment to phasing out energy subsidies and aligning local fuel prices with international costs by December, in a move to tackle its widening current account deficit, as previously noted by the International Monetary Fund (IMF) in March.
However, Cairo emphasized that diesel subsidies will remain, even if that means raising the prices of other fuel types above market value to sustain them.
The IMF has encouraged Egypt to scale back subsidies on fuel, electricity, and food, while expanding social support programs under an $8 billion loan deal.
According to central bank data, Egypt’s current account deficit reached $2.2 billion in the second quarter, with petroleum imports rising to $500 million, up from $400 million the previous year.
Gasoline prices also climbed by as much as 12.7%, with 80-octane fuel now costing 17.75 pounds per liter, 92-octane at 19.25 pounds, and 95-octane at 21 pounds.
