News

Egypt to Lift the Subsidy for 95 Octane Gasoline in March

mm
Egypt to Lift the Subsidy for 95 Octane Gasoline in March

Photo credi: Mohamed Abd El Ghany/ Reuters

A senior Egyptian official revealed to Bloomberg that Egypt will lift the subsidy for the 95 octane gasoline in March and the new prices will be announced  by the end of the month.

According to the anonymous official, the government plans to lift the subsidy off of the other grades of gasoline, 92 octane and 89 octane, in September 2019. The new prices, however will be announced next summer.

The International Monetary Fund (IMF) delayed its fifth installment of the three-year USD 12 billion loan to Egypt for a month, because of some amendments in the government’s economic reform program.

The source said that IMF persisted that the government should announce the new gas prices on the agreed dates.“The [pricing] mechanism links local fuel prices to international ones, and is a key part of the government’s plans to cut costs,” the official said.

After the IMF’s Executive Board reviewed Egypt’s economic reform program, the IMF is sending Egypt the fifth installment of USD 2 billion as part of the extended fund facility arrangement.

In total, after receiving the fifth installment, Egypt would have received USD 10 billion of the USD 12 billion extended facility fund.

Egypt secured the IMF’s loan programme in 2016 following a radical economic decision early in the year.

Egypt’s central bank floated the local currency in a surprise move early in 2016, “moving to a liberalized exchange rate regime in order to quell any distortions in the domestic foreign currency market.”

The move was aided by the fund which also enabled a reduction of energy subsidies, fuel subsidies and the imposition of new taxes. The decision was brought on by multiple years in which Egypt suffered from political instability which affected its foreign currency and investments.

Although the Egyptian government economic reform program has been met with local criticism and resistance, the IMF  withstands its position that the program is wielding positive results with a determined increase in private remittances, FDI, and net portfolio inflow.

Why Are the Protests in Sudan Important for Egypt?
Ex-President Mubarak Testifies Regarding 2011 Jail Break Incident

Subscribe to our newsletter


News

More in News

First Creative Entrepreneurship Event in Egypt For Women

Egyptian StreetsJune 16, 2019

Cairo’s Third Metro Line Fare Prices Increase to EGP 5 – EGP 10

Egyptian StreetsJune 16, 2019

Aguirre: I Will Leave If I Don’t Achieve Egypt’s Targets

Egyptian StreetsJune 15, 2019

Egyptian MP Proposes Abolishing Plastic Bags in Favour of Eco-Friendly Alternatives

Egyptian StreetsJune 11, 2019

Google Honors Egyptian Writer Ahmed Khalid Tawfik

Egyptian StreetsJune 10, 2019

African Union Suspends Sudan Membership Over Violent Military Crackdown

Egyptian StreetsJune 6, 2019

‘King Lear’ By Yehia El-Fakharany Returns to Egypt’s Theatre in June

Egyptian StreetsJune 5, 2019

Attack on Sinai Checkpoint Kills Eight Egyptian Security Officers

Egyptian StreetsJune 5, 2019
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.

© 2017 Egyptian Streets. All Rights Reserved.