Egypt raise fuel prices ahead of IMF review, second increase since loan deal expansion

(MENAFN) On Thursday, Egypt implemented a significant increase in the prices of various fuel products, according to an announcement in the official gazette. This adjustment comes just days before the International Monetary Fund (IMF) is set to conduct its third review of the country’s expanded USD8 billion loan program. The new pricing structure, as mandated by the Egyptian Ministry of Petroleum, includes an increase in gasoline and diesel prices: Gasoline 80 is now priced at 12.25 pounds per liter, up from 11 pounds, reflecting an 11.4 percent rise; Gasoline 92 has increased to 13.75 pounds from 12.5 pounds, a 10 percent increase; Gasoline 95 has risen to 15 pounds from 13.5 pounds, an 11.1 percent hike; and diesel prices have been raised to 11.5 pounds from 10 pounds, marking a 15 percent increase.

This marks the second occasion this year that Egypt has raised fuel prices following the expansion of its loan program by an additional USD5 billion in March. As part of the agreement with the IMF, Egypt has committed to reducing its fuel subsidies. Prime Minister Mostafa Madbouly has indicated that the government plans to gradually increase petroleum product prices until December 2025, citing the unsustainable burden of rising consumption. According to estimates from the IMF, Egypt is expected to spend approximately EGP 331 billion (USD6.85 billion) on fuel subsidies for the 2024-25 fiscal year and EGP 245 billion (USD5.07 billion) for the 2025-26 fiscal year. The IMF's third review, originally scheduled for July 10, has been delayed to July 29 to finalize certain policy details, which the IMF has not yet disclosed. 

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