News

Gas Prices Increased By Up to 47 Percent in Egypt

Gas Prices Increased By Up to 47 Percent in Egypt

A worker holds up a fuel pump nozzle after filling up the tank of a car at a petrol station in Cairo October 3, 2012. REUTERS/Mohamed Abd El Ghany
A worker holds up a fuel pump nozzle after filling up the tank of a car at a petrol station in Cairo October 3, 2012. REUTERS/Mohamed Abd El Ghany

Less than 24 hours after the Egyptian Pound was floated by the Central Bank of Egypt, the government issued a decision raising prices of fuel, diesel, butane gas, and natural gas by up to 47 percent.

The increase in prices is a result of the Egyptian government reducing subsidies on gas products, which have historically been highly subsidized.

Fuel and Diesel

According to the Ministry of Petroleum, the prices for 80 octane gasoline increased from EGP 1.6 to EGP 2.35 per litre. Prices for 92 octane gasoline have increased to EGP 3.5 from EGP 2.6 per litre, while diesel prices increased to EGP 2.35 per litre from EGP 1.8.

However, prices for 95 octane have remain unchanged at EGP 6.25 per litre.

Natural and Butane Gas

For natural gas, prices have increased from EGP 1.1 per cubic metre to EGP 1.6 per cubic metre.

Meanwhile, butane gas for homes have increased in price from EGP 8 to EGP 15, while prices for commercial consumption increased from EGP 16 to EGP 30.

Background – Floating of the Currency

On Thursday, the Central Bank of Egypt announced that it has floated the Egyptian pound against all foreign currencies.

At the start of the day, the Egyptian Pound was floated to EGP 13.00 per USD 1.00. Selling a US dollar, however, yields EGP 13.50. The Egyptian pound will be allowed to fluctuate (either positively or negatively) in value by 10 percent for a short period before it is set. For example, at the end of the day, some banks had been buying USD at a rate of EGP 15 for USD 1.

Prior to the devaluation, the US dollar’s official selling price was EGP 8.88, while the buying price stood at EGP 8.85.

The International Monetary Fund (IMF), which has been calling on a reduction of subsidies in Egypt, “welcomed” Egypt’s move to float the Egyptian pound.

Egypt has been waiting for the IMF to give its final approval to a USD 12 million loan, which Egypt will use to support its reform program that aims to reduce the state’s large budget deficit. One condition, reportedly, was the devaluation of the Egyptian Pound and the relaxation of subsidies.

 

End of Sugar 'Crisis'? Egypt Cancels Import Tariffs on Sugar to Boost Supplies
Egypt Tourism 'Will Recover,' Return to Pre-2011 Levels Next Year: World Travel Council Official

Subscribe to our newsletter


News

More in News

A snapshot from a video released on Twitter by Ansar Bayt al-Maqdis on August 28, 2014.

Australia Declares ‘Ansar Bait Al-Maqdis’ a Terrorist Organization

Egyptian StreetsDecember 10, 2016
nieuwe-groep-claimt-aanslag-cairo-961x658

Seven Killed in Giza, Kafr El-Sheikh Explosions Targeting Police

Egyptian StreetsDecember 10, 2016
1000_1472412595osama_mursi_22415

Former President Morsi’s Son Arrested

Egyptian StreetsDecember 9, 2016
azzasoliman

Egyptian Women’s Rights Activist Azza Soliman Released on Bail after Arrest

Egyptian StreetsDecember 8, 2016
Credit: Martin Roemers/Anastasia Photo

Professors and Doctors Among 45 Arrested in Egypt Organ Trafficking Ring

Egyptian StreetsDecember 6, 2016
05black

Egypt’s Foreign Reserves Rise to $US 23 Billion

Egyptian StreetsDecember 6, 2016
1200x-1-1024x697-1

Naguib Sawiris Steps Down as CEO of Orascom in Surprise Resignation

Egyptian StreetsDecember 6, 2016
One of the leaked images allegedly from a Heinz Egypt factory.

Senior Heinz Egypt Employee Arrested After 62 Tonnes of Rotten Tomatoes Found

Egyptian StreetsDecember 6, 2016
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2016 ES Media UG. All Rights Reserved.