Egypt's government raised prices on a variety of fuels on Friday, marking the latest adjustment in a series of measures aimed at navigating a challenging economic climate. The increases, announced in the official gazette and attributed to the country's Fuel Pricing Committee, affect gasoline, diesel, and cooking gas.
The price hikes come as Egypt grapples with the global rise in energy costs, fueled in part by the ongoing war in Ukraine. The country, a net importer of fuel, has seen its import bill surge in recent months, putting pressure on its foreign exchange reserves.
The new pricing structure applies to various types of gasoline. The cost of 80-octane gasoline, commonly used in older vehicles, climbed by 1 Egyptian pound (around $0.02 USD) to 11 pounds per liter. Prices for the more prevalent 92-octane gasoline rose by the same amount, reaching 12.50 pounds per liter. The premium 95-octane gasoline saw the steepest increase, rising to 13.50 pounds per liter, a jump of 1 pound.
Diesel fuel, a crucial commodity for transportation and industry, was not spared from the price adjustments. The price of diesel climbed to 10 pounds per liter, reflecting a 1.75-pound increase. While the rise might seem significant, it's worth noting that diesel prices had previously lagged behind the global surge compared to gasoline.
The price adjustments extended to liquefied petroleum gas (LPG), commonly known as cooking gas, a vital source of fuel for millions of Egyptian households. The cost of a standard LPG cylinder was set at 100 pounds, a move aimed at ensuring continued affordability for essential cooking needs.
The Egyptian government has implemented a system of automatic fuel pricing adjustments in recent years. This mechanism is designed to reduce government subsidies on fuel and lessen the strain on the national budget. However, the latest price hikes are likely to strain household budgets, particularly for low-income earners who rely heavily on subsidized goods.
The government has acknowledged the potential impact on citizens and has indicated that social safety net programs will be crucial in mitigating the effects of rising fuel costs. These programs provide financial assistance to low-income families and vulnerable segments of the population.
The recent fuel price adjustments highlight the complex economic challenges facing Egypt. While the government seeks to manage its budget and reduce reliance on subsidies, it must also navigate the global energy price surge and ensure the continued well-being of its citizens.