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Egypt Raises Domestic Fuel Prices by up to 15% before IMF Review

This picture taken on March 20, 2024 shows a view of the Cairo University bridge across the Nile river connecting Cairo (R) with its twin city of Giza (L). (AFP)
This picture taken on March 20, 2024 shows a view of the Cairo University bridge across the Nile river connecting Cairo (R) with its twin city of Giza (L). (AFP)
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Egypt Raises Domestic Fuel Prices by up to 15% before IMF Review

This picture taken on March 20, 2024 shows a view of the Cairo University bridge across the Nile river connecting Cairo (R) with its twin city of Giza (L). (AFP)
This picture taken on March 20, 2024 shows a view of the Cairo University bridge across the Nile river connecting Cairo (R) with its twin city of Giza (L). (AFP)

Egypt raised the prices of a wide range of fuel products on Thursday, the official gazette said, four days before the International Monetary Fund (IMF) conducts a third review of its expanded $8 billion loan program for the country.

The official gazette, citing the petroleum ministry, said petrol prices increased by up to 15% per litre, with 80 octane rising to 12.25 Egyptian pounds ($0.25), 92 octane to 13.75 pounds and 95 octane to 15 pounds.

Diesel, one of the most commonly used fuels, saw the biggest increase, rising to 11.50 Egyptian pounds ($0.24) from 10 pounds, according to Reuters.

This is the second time the government has raised fuel prices since the IMF expanded its loan program by $5 billion in March. Egypt has committed to slashing fuel subsidies as part of the agreement.

But Egyptians who spoke to Reuters, including taxi driver Sayed Abdo, complained that Thursday's move would mean an automatic increase in prices for daily goods.

"If you ride with me today and usually pay 10 Egyptian pounds, I will ask you for 15, because fuel prices are raised. That's normal, because when I go get food, what I used to buy with 10 Egyptian pounds becomes now for 15," he said.

"We don't know where we're headed with these prices."

On Wednesday, Prime Minister Mostafa Madbouly said prices of petroleum products will gradually increase until the end of 2025, adding that the government could no longer bear the burden of increasing consumption.

Egyptians have also endured blackouts, which Madbouly said had ended at the start of this week, as the country struggled to import sufficient natural gas to tackle the summer heat.

In April, the IMF estimated that Egypt will spend 331 billion Egyptian pounds ($6.85 billion) on fuel subsidies in 2024/25 and 245 billion in 2025/26.

The IMF's approval for the third review of the expanded loan program was originally expected on July 10, but was pushed back to July 29, with the lender attributing the delay to the finalisation of some policy details.

The IMF is expected to disburse $820 million to Egypt after concluding its review.

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Saudi Arabia Enacts Reforms to Boost Business Climate, Investment Appeal

Riyadh (SPA)
Riyadh (SPA)
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Saudi Arabia Enacts Reforms to Boost Business Climate, Investment Appeal

Riyadh (SPA)
Riyadh (SPA)

Saudi Arabia will enforce two major regulatory frameworks, the Law of Commercial Register and Law of Trade Names, starting Thursday, marking a significant overhaul of its business registration process.

The reforms are part of the kingdom’s ongoing efforts to modernize its regulatory environment, create a more business-friendly ecosystem, and strengthen its position as a global investment hub in line with Vision 2030.

Approved by the Saudi government on Sept. 17, the new laws represent a major regulatory shift aimed at empowering investors, facilitating business growth, and unlocking investment opportunities nationwide.

They form part of a broader, ongoing regulatory transformation designed to enhance transparency, improve the business climate, and align with the kingdom’s economic and technological advancements.

Commerce Minister Majid Al-Kassabi said the Cabinet’s approval of the laws aims to streamline business operations and ease the burden on enterprises by consolidating their registration into a single nationwide record.

The new framework also standardizes the reservation and registration of trade names to protect and enhance their value, aligning with Saudi Arabia’s economic and technological advancements under Vision 2030.

Saudi Arabia ranks 62nd out of 190 economies in the World Bank's latest annual Ease of Doing Business index.

Ministry of Commerce official spokesperson Abdulrahman Al-Hussein noted that the new commercial register law introduces major changes.

Among the key changes are the elimination of subsidiary registers, with a single commercial register now being sufficient. Additionally, the law removes the requirement to specify the city of registration, allowing one commercial registration to apply across all regions of the Kingdom.

The new law also obligated commercial establishments in Saudi Arabia to open bank accounts linked to the establishment in order to enhance its reliability and ensure the integrity of its transactions.

In addition, the law cancels the expiration date for the commercial register, requiring only an annual confirmation of the data, the spokesman stated.

Under the law, the commercial registration number will serve as the establishment’s unified number, starting with (7).

The ministry will grant existing subsidiary registers a five-year grace period to rectify their status in accordance with the new regulations.

Meanwhile, the new Law of Trade Names in Saudi Arabia, which consists of 23 articles, aims to regulate the procedures for reserving and recording names in the commercial register, maximizing their value, and protecting them and their rights.

The law allows a trade name to be reserved before it is recorded for a specific period that can be extended. It also sets the requirements that must be met by trade names to be registered or reserved, and the criteria for prohibited names.

Al-Hussein explained that the new regulations also allow for the reservation and registration of trade names in English, including letters or numbers.

This marks a departure from the previous law, which permitted only Arabic names without foreign characters or numbers.

The new law will enable the management of trade names independently from the establishment, allowing for the transfer of their ownership while prohibiting the registration of identical or similar names for different establishments in Saudi Arabia, even if their activities differ.

Al-Hussein noted that the law also includes regulations for reserving family names as trade names and establishes criteria for prohibited or misleading names.