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IMF Lauds Egypt’s Decision to Lower Fuel Prices

A general view of a Mobil gas station in Cairo, Egypt, 04 October 2019. EPA/Mohamed Hossam
A general view of a Mobil gas station in Cairo, Egypt, 04 October 2019. EPA/Mohamed Hossam
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IMF Lauds Egypt’s Decision to Lower Fuel Prices

A general view of a Mobil gas station in Cairo, Egypt, 04 October 2019. EPA/Mohamed Hossam
A general view of a Mobil gas station in Cairo, Egypt, 04 October 2019. EPA/Mohamed Hossam

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.

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Asharq Al-Awsat Tours Riyadh Metro on First Day of its Launch

Riyadh residents ride the Riyadh Metro on its launch day on Sunday. (Turky al-Agili)
Riyadh residents ride the Riyadh Metro on its launch day on Sunday. (Turky al-Agili)
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Asharq Al-Awsat Tours Riyadh Metro on First Day of its Launch

Riyadh residents ride the Riyadh Metro on its launch day on Sunday. (Turky al-Agili)
Riyadh residents ride the Riyadh Metro on its launch day on Sunday. (Turky al-Agili)

“Big achievements take time,” remarked university student Ahmed Al-Omari quoting a Saudi proverb as the Riyadh Metro officially began operations, opening three lines to passengers on Sunday morning. This long-anticipated mega-project is a significant milestone in advancing infrastructure to meet the needs of Riyadh’s rapidly growing population.

The proverb underscores that delays often reflect the scale and ambition of a project rather than inefficiency. After 11 years and a $22 billion investment, the Riyadh Metro, one of the largest transit systems in the Middle East, is now a reality, featuring six main lines spanning the city.

The metro boasts six lines extending 176 kilometers, making it the world’s longest driverless metro system. With 85 stations, including four major hubs, it has a daily capacity to serve 3.6 million passengers.

“I was worried about parking, but it turned out to be convenient and located right at the station,” said commuter Khuloud Al-Amri. The metro system provides 21 public parking facilities, each accommodating between 200 and 600 vehicles, to facilitate access. Additionally, 19 other parking sites with similar capacities are available across the network, along with seven maintenance and overnight facilities at its edges.

The Riyadh Metro offers the lowest transportation cost among G20 nations relative to daily income, according to Maher Shira, Director General of Smart Cities at the Royal Commission for Riyadh. Fares amount to just 0.5% of the average daily income of SAR 733 (approximately $195), compared to 0.9% in Türkiye and 1–3% in other G20 countries.

“My commute typically takes 30 to 45 minutes. I hope the metro will reduce this time,” said Hatem Al-Fawaz, one of the metro’s first passengers on launch day.

Environmentally, the metro aligns with Riyadh’s green initiatives. Existing city buses already use low-sulfur fuel, making them among the world’s most eco-friendly.

The metro further contributes by reducing carbon emissions and improving air quality, according to the Royal Commission. It also helps mitigate greenhouse gas emissions and urban heat through sustainable transport options.

The Riyadh Metro is expected to alleviate traffic congestion by 30%, marking a transformative step toward sustainable urban mobility and a better quality of life for residents.