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Egypt Raises Domestic Fuel Prices for 6th Time in a Row

A gas station in Cairo (AP)
A gas station in Cairo (AP)
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Egypt Raises Domestic Fuel Prices for 6th Time in a Row

A gas station in Cairo (AP)
A gas station in Cairo (AP)

Egypt raised on Wednesday its domestic fuel prices for the sixth time in a row along with the prices of diesel, which it has managed to sell at fixed price for three years.

The fuel pricing committee in a quarterly review raised domestic fuel prices by EGP0.50 for 80-octane, 92 octane petrol, and diesel while 95-octane petrol was raised by EGP1, the Petroleum Ministry said in a statement.

Prices of 80-octane, 92-octane and 95-octane petrol were raised to EGP8 ($0.4244), EGP9.25 ($0.4907) and EGP10.75 ($0.5703) per liter, respectively, while the diesel price reached EGP7.25, effective on Wednesday.

Egypt consumes about 12 million tons of diesel and about 6.7 million tons of gasoline annually.

The committee also decided to fix the prices of diesel supplied to the food and electricity industries, while raising the price of a ton of diesel fuel supplied to the rest of the industries by EGP400, bringing the price of a ton of diesel to EGP5,000.

The Ministry of Finance estimated the average price of an oil barrel in its 2022-23 budget at $80, compared to $61 in the previous budget.

The committee meets quarterly and relies in its decision on measuring the level of international oil prices, exchange rates, transportation, operating and production costs.

According to the law, it can fix, raise or reduce prices by no more than 10% each time its members meet.

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Oil Prices Nudge Higher Ahead of OPEC+ Meeting

FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo
FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo
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Oil Prices Nudge Higher Ahead of OPEC+ Meeting

FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo
FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo

Oil prices climbed nearly 1% on Tuesday, as traders awaited the outcome of an OPEC+ meeting later this week.
Brent crude futures rose 66 cents, or 0.92%, to $72.49 a barrel by 0909 GMT, while US West Texas Intermediate crude climbed 63 cents, or 0.93%, to $68.73, Reuters reported.
OPEC+ is likely to extend its latest round of output cuts until the end of the first quarter at its Dec. 5 meeting, according to sources.
"Given a rise in compliance with production cuts from Russia, Kazakhstan, and Iraq, the lower Brent price level, and indications in press reports, we assume an extension of OPEC+ production cuts till April," Goldman Sachs analysts said in a note.
OPEC+, which accounts for about half of the world's oil production, has been looking to gradually unwind production cuts through 2025.
However, the prospect of an oil market surplus has exerted downward pressure on prices, with Brent trading nearly 6% below its average for December 2023.
"I think there's no other option but to defer it," Priyanka Sachdeva, a senior market analyst at Phillip Nova said, adding that mounting pressure from participant-nations to increase production could cap any extension at a couple of months.
The global oil demand outlook remains weak, with China's crude imports likely to peak as early as next year, as demand for transport fuel begins to decrease, researchers and analysts said.
Concerns that the US Federal Reserve may not cut rates at its December meeting have also capped oil prices.
In the Middle East, holes continued to appear in a US-brokered ceasefire between Israel and Hezbollah, with several people killed in strikes on southern Lebanese towns shortly after Hezbollah fired missiles on an Israeli military position in the disputed Shebaa Farms area on Monday.