Egypt raised prices on a wide range of fuel products on Tuesday, the petroleum ministry said, as the region continues to reel from rising global oil and gas prices and the disruption of Middle East output from the U.S.-Israeli war on Iran.
“This comes in light of the exceptional situation resulting from the geopolitical developments in the Middle East region and their direct effects on global energy markets”, the ministry said in a statement.
The decision comes days after Egyptian Prime Minister Mostafa Madbouly said in a press conference on March 3 that the state might resort to “exceptional measures” if global fuel prices rise significantly due to the war.
Global oil and gas prices have been rising as the war has halted Middle East energy exports, with Tehran attacking ships and energy facilities, which have closed navigation in the Gulf and forced production stoppages from Qatar to Iraq.
The increases of about 14% to 17% across a wide range of petroleum products are the first this year and follow a hike of nearly 10.5% to 12.9% in October. Egypt said at the time it was going to freeze domestic fuel prices for at least a year, citing local, regional, and global developments.
Prices for diesel, one of the most commonly used fuels in the country, were raised by 3 Egyptian pounds to 20.50 Egyptian pounds ($0.3887) from 17.50 pounds.
Gasoline prices increased by as much as 16.9%, depending on the grade, with 80 octane gasoline rising to 20.75 pounds per litre, while 92 octane rose to 22.25 pounds and 95 octane increased to 24 pounds.
Egypt has taken on back-to-back financing facilities with the International Monetary Fund since 2016, when it agreed on a $12 billion loan programme to resuscitate its economy after years of political turmoil since the Arab Spring protests began.
Since then, the Washington-based lender has pushed the government to cut fuel, electricity , and food subsidies while expanding social safety nets. Egypt agreed on an expanded $8 billion loan programme with the IMF in March 2024.
($1 = 52.7400 Egyptian pounds)
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