عربي English Türkçe اردو فارسى
Logo
Latest News
Business

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)
TT
TT

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.

Most Viewed

 
 
Business

Yemen Minister: We Aim to Invest in Lithium Reserves for Renewable Energy

Yemeni Oil and Minerals Minister Saeed Al-Shammasi
Yemeni Oil and Minerals Minister Saeed Al-Shammasi
TT
TT

Yemen Minister: We Aim to Invest in Lithium Reserves for Renewable Energy

Yemeni Oil and Minerals Minister Saeed Al-Shammasi
Yemeni Oil and Minerals Minister Saeed Al-Shammasi

Yemen has reserves of lithium, a key mineral for battery and electric vehicle production, according to preliminary studies, Oil and Minerals Minister Saeed Al-Shammasi said.

The findings underscore the urgent need for investment and infrastructure development.

Speaking to Asharq Al-Awsat on the sidelines of the Fourth International Ministerial Meeting at the International Mining Conference in Riyadh on Tuesday, Al-Shammasi revealed that the initial studies identified lithium reserves, a critical component in the production of batteries and solar panels.

“We also have copper reserves, but they require significant investment and infrastructure development,” he added.

Al-Shammasi said he met with Saudi Industry and Mineral Resources Minister Bandar Alkhorayef to explore collaboration opportunities with investors in the Kingdom.

He also announced a forthcoming meeting with the head of Saudi Arabia’s Chamber of Commerce and Industry to discuss joint projects.

“Recently, a Saudi-Yemeni Business Council was established to support the creation of joint ventures across various sectors,” he noted.

Al-Shammasi also highlighted the importance of the event, which builds on discussions from its previous edition. He said three new initiatives were introduced, focusing on investment in critical minerals essential for energy industries.

“These minerals will play a major role in the global energy landscape over the next 50 years, as countries seek to reduce dependence on oil,” Al-Shammasi said, emphasizing the need for investments and supportive legislation from resource-rich nations.

He stressed the importance of advanced technologies in modern mining and praised Saudi Arabia’s efforts, including the establishment of new research centers in the field.

Al-Shammasi further noted that the mining industry is helping reduce environmental pollution by leveraging alternative energy sources and critical minerals, aligning with the global shift away from traditional raw materials in sectors such as battery production and electric vehicles.