Egypt’s govt hikes gasoline, diesel prices, 2nd increase since currency flotation

Egypt’s government on Thursday increased gasoline and diesel prices, in the second fuel hike since the currency was floated in November and the latest cut in state subsidies to ease the budget deficit, Petroleum Minister Tarek El Molla told Reuters.

Molla said the price of 92-octane gasoline rose to 5 Egyptian pounds ($0.2767) from 3.5 pounds per litre and diesel and 80-octane, the most commonly used fuel category, increased to 3.65 pounds per liter from 2.35 pounds per liter.

He said the total amount of subsidies for petroleum products in 2017-2018 will decrease to 110 billion Egyptian pounds ($6.09 billion) from 145 billion Egyptian pounds ($8.02 billion).

Food and energy subsidies traditionally eat up a about quarter of state spending, but austerity reforms are political sensitive for President Abdel Fattah al-Sisi as higher cost of living cuts into his popularity.


Editor’s note: $1 = 18.0700 Egyptian pounds


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