For the first time in 2024, Egypt has announced an increase in fuel prices in an effort to reduce the gap between production costs and selling prices, the Ministry of Petroleum and Mineral Resources said in an official statement on Friday, 22 March.
The recent liberalization of the exchange rate and rising transportation costs, especially due to Red Sea incidents, have significantly increased the cost of imported petroleum products, widening the gap between production costs and selling prices to new highs.
The price of diesel has increased by EGP 1.75 per liter, from EGP 8.25 to EGP 10. The price of all octane grades has also risen by EGP 1 per liter: Octane 80 is now EGP 11 per liter, Octane 92 is EGP 12.50 per liter, and Octane 95 is EGP 13.50 per liter.
Additionally, the price of a 12.5-kilogram butane gas cylinder for domestic use has increased from EGP 75 to EGP 100.
The new prices will take effect at 3:00 AM on Friday, 22 March.
The committee last adjusted octane prices in November 2023, making this the second fuel price in recent months.
Egypt recently undertook a series of actions to address its financial challenges. Firstly, the Central Bank implemented the nation’s largest-ever interest rate hike. This significant increase, aimed at curbing inflation and attracting foreign investment, makes borrowing more expensive for businesses and individuals.
Secondly, Egypt allowed its currency, the Egyptian Pound (EGP), to significantly devalue by over 38 percent.
The primary motivation behind these measures is to secure additional financial aid from the International Monetary Fund (IMF) and other lenders. Egypt recently signed an expanded loan program with the IMF, increasing an existing loan program by USD 5 billion.
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[…] March, Egypt saw its first fuel price hike, followed by a second increase in July, with prices rising by […]
[…] March, Egypt saw its first fuel price hike, followed by a second increase in July, with prices rising by […]