The Egyptian government has increased the domestic fuel prices by 50% in order to meet the terms of a US$12bn International Monetary Fund (IMF) bailout loan deal.
The 92-octane gasoline price has been increased by 40% up to EGP 5/l (US$28c/l) from EGP 3.5/l. Diesel and 80-octane fuel prices have been raised by 50% from EGP 2.35/l up to EGP 3.65/l (US$20c). Prices for butane gas doubled and reached EGP 30 (i.e. US$1.66) per cylinder from EGP 15. Fuel oil prices to cement factories will increase by 40% from EGP 2,500/t (US$138/t) to EGP 3,500/t (US$193/t) but gas prices to the industrial sector will remain stable.
In 2017-2018, Egypt's subsidies for petroleum products will decrease from EGP 145bn (US$8bn) down to in EGP 110bn (US$6.1bn) as agreed with the IMF. The IMF lent US$12bn but required an austerity programme and subsidies cuts in return.
This is not the country's first price hike since the authorities already increased the fuel price by 47% in November 2016 and floated the Egyptian pound, as agreed with the IMF.
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