Egypt raises fuel prices ahead of IMF review

(MENAFN) On Monday, Egypt's government announced a significant increase in fuel prices, marking the second adjustment since the International Monetary Fund (IMF) expanded its loan program to the country by USD5 billion in March. The move comes just days before the IMF is scheduled to conduct its third review of Egypt's USD8 billion loan program. The Official Gazette reported that the price of 80-octane gasoline has risen by 15 percent, now costing 12.25 pounds per liter. Similarly, 92-octane gasoline is priced at 13.75 pounds per liter, and 95-octane gasoline has reached 15 pounds per liter. Diesel, a crucial and widely used fuel, has seen an even steeper increase, with its price climbing from 10 pounds to 11.50 pounds per liter.

This price hike reflects the Egyptian government's ongoing commitment to reducing fuel subsidies as part of its agreement with the IMF. Prime Minister Mostafa Madbouly has previously indicated that the prices of petroleum products would continue to rise gradually until the end of 2025, citing the unsustainable burden of increased consumption on the government's finances. The IMF's April projections estimated that Egypt would spend approximately EGP 331 billion (USD6.85 billion) on fuel subsidies in the 2024-25 fiscal year and EGP 245 billion (USD5.07 billion) in 2025-26.

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