Egypt has decreased fuel prices for the first time in decades, as it begins linking energy prices to international markets.
Although the drop was only around three percent, Egyptians welcomed the move in hopes for further price cuts.
International Monetary Fund (IMF) Mission Chief for Egypt Subir Lall lauded the pricing committee’s decision on Thursday to lower domestic fuel prices by 25 piasters.
In press statements, he noted that amending the prices of fuel products in Egypt comes in line with the mechanism of automatic pricing that was announced in July.
The mechanism allows for increasing or decreasing the prices of some fuel products every three months partly based on international oil prices, he added.
The price for 92-octane gasoline was lowered to 7.75 Egyptian pounds a liter from 8 pounds, while the cost of 80-octane gas dropped to 6.50 Egyptian from 6.75 pounds.
Egypt signed a three-year, $12 billion Extended Fund Facility on Nov. 11, 2016, after allowing its currency to weaken sharply, implementing a valued-added tax and raising fuel prices to reduce its balance of payments budget and deficits.
Also on Thursday Egypt lowered the domestic price of gas for the cement, metals and ceramics industries.
The domestic price of gas for the cement industry was set at $6 per million Btu from $8 and at $5.50 per million Btu for metals and ceramics sector from $7.