Egypt increased prices for a range of fuel products on Tuesday, raising them by about 14% to 17%, according to the country’s petroleum ministry.
The move comes as global oil and gas prices climb amid regional tensions and disruptions to energy supply linked to the conflict involving the United States, Israel and Iran, Reuters reported.
“This comes in light of the exceptional situation resulting from the geopolitical developments in the Middle East region and their direct effects on global energy markets”, the ministry said in a statement.
The increase follows comments made on March 3 by Prime Minister Mostafa Madbouly, who said the government might resort to “exceptional measures” if global fuel prices surge due to the war.
Oil and gas prices have been rising as the conflict disrupts Middle East energy exports. Tehran has attacked ships and energy facilities, closing navigation routes in the Gulf and forcing production shutdowns in several countries, including Qatar and Iraq.
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The price increases announced Tuesday are the first this year and follow a previous rise of about 10.5% to 12.9% in October. At that time, the government said domestic fuel prices would be frozen for at least a year due to local, regional and global developments.
Diesel, one of the most widely used fuels in the country, rose by 3 Egyptian pounds to 20.50 pounds ($0.3887) per litre from 17.50 pounds.
Gasoline prices also climbed by up to 16.9%, depending on the grade. The price of 80-octane gasoline increased to 20.75 pounds per litre, while 92-octane gasoline rose to 22.25 pounds and 95-octane gasoline reached 24 pounds per litre.
Egypt has secured multiple financing agreements with the International Monetary Fund since 2016, when it agreed to a $12 billion loan programme aimed at reviving the economy following years of political instability after the Arab Spring protests.
Since then, the Washington-based lender has urged the government to reduce subsidies on fuel, electricity and food while expanding social protection programmes. In March 2024, Egypt agreed to an expanded $8 billion loan programme with the IMF.
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Image Credit: Al Jazeera Media Network
