CAIRO (AP) — Egypt increased fuel prices by around 12% on Friday, a step likely to drive up the costs of goods and services across the country. This is the second fuel price hike this year.
In a statement posted on Facebook, the Egyptian government gave no reason for the move but said fuel prices will remain fixed in the local market with no further increases for at least one year.
Egyptians have been grappling with soaring inflation as they navigate rising daily costs that reached another high last year. They included an increase in fuel prices, a hike in subway fares and a slide in the Egyptian pound against foreign currencies.
According to the latest data from the Central Bank of Egypt posted Oct. 8, Egypt’s annual urban consumer price inflation reached 11.7% in September— down from 12% in August and 13.9% in July.
Fuel prices last increased in April, rising between 11% and 14% on various fuel products.
At the time of a previous price hike in late 2024, the government said that raising prices was meant to “reduce the gap between the selling prices of petroleum products and their high production and import costs.”
According to the new prices taking effect on Friday, the cost of a liter of diesel — which is heavily relied on for public transport — increased from 15.50 pounds ($0.33) to 17.50 pounds ($0.37), while the price of the 92-octane gasoline rose to 19.25 pounds ($0.40) from 17.25 pounds ($0.36) and the 95-octane gasoline increased from 19 pounds ($0.40) to 21 pounds ($0.44).
The petroleum sector will continue running refineries at full capacity and provide incentives to its partners to boost production, reduce import expenses, and stabilize costs — with the aim of narrowing the gap between production costs and selling prices, said the government on Friday.
Earlier this year, the government raised the minimum monthly wage for both public and private sector workers to 7,000 pounds ($138), up from 6,000 pounds ($118.58).
The Egyptian economy has been hit hard by years of government austerity, the coronavirus pandemic, the fallout from Russia’s full-scale invasion of Ukraine, and most recently, the Israel-Hamas war in Gaza. The Houthi attacks on shipping routes in the Red Sea have slashed Suez Canal revenues, which is a major source for foreign currency. The attacks forced traffic away from the canal and around the tip of Africa.
Egypt previously reached a deal with the IMF to more than double the size of its bailout to $8 billion. The price hikes have been deemed necessary to meet conditions set by the International Monetary Fund for further assistance to the country.
In March, the IMF said it completed its fourth review of Egypt’s economic reform program approving a $1.2 billion disbursement for the North African country.
