As Part Of Reforms, Egypt Raises Fuel Prices

7/26/2024 2:56:05 PM

(MENAFN- Brazil-Arab News Agency (ANBA)) Cairo – Egypt announced Thursday (25) a 15% increase in petrol prices, part of a reform package requested by the International Monetary Fund (IMF) to proceed with a USD 5 billion loan to the government.

The Egyptian petroleum Ministry said the price hike would come into effect on Friday (26).

The announcement comes ahead of an IMF meeting on Monday (29) to review the April payout package, unlocking USD 820 million in funds after Cairo received another such tranche of the loan in late June.

Egypt is suffering with ballooning foreign debt driving up inflation and resulting in several consecutive devaluations of the local currency against the dollar.

Inflation peaked at nearly 40% last year, before winding down to 27.5% in June.

Reforms

The IMF has demanded wide-ranging reforms, most notably adopting a liberal exchange regime as well as limiting government spending and incentivizing private investment.

Egypt has also been caught in regional tensions, with attacks on shipping around the Red Sea having also hit revenues from its Suez Canal.

The key waterway, which connects Asia to Europe, normally carries about 12% of global maritime trade.

Read more:
World Bank allocates USD 700 million for Egypt
Egypt hikes bread price for 1st time in decades

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