The Egypt government has raised the price of all fuel products, to end the subsidies and reach a break-even point by December 2025. Diesel prices have increased by 15% to EGP11.5/l (US$24c/l), with 80 octane rising by 11% to EGP12.25/l (US$25c/l), 92 octane by 10% to EGP13.75/l (US$28c/l) and 95 octane by 11% to EGP15/l (US$31c/l). The country is participating in an US$8bn loan program with the International Monetary Fund (IMF), which requires gradually eliminating fuel subsidies to reduce the budget deficit. The third review of this program is set for 29 July 2024.
Supply cost of diesel in Egypt amounted to US$88c/l in 2022, according to the IMF, for a consumer price of US$30c/l. With an explicit subsidy for diesel of US$58c/l, the Egyptian government spent US$11.7bn (or 3.5% of GDP) in 2022 on diesel subsidy. Similarly, gasoline subsidy reached US$3.1bn in 2022 (or 0.9% of GDP), with an explicit subsidy of US$26c/l. Fuel products accounted for 45% of Egypt’s final energy mix in 2023, with demand reaching 13 Mt for diesel (-1% compared to 2022) and 7 Mt for gasoline (+3%).
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