Egypt raises domestic fuel prices by up to 15% before IMF review
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 U.S. dollars loan programme for the country.
The official gazette, citing the petroleum ministry, said petrol prices increased by up to 15 percent per litre, with 80 octane rising to 25 U.S. cents, 92 octane to 28 U.S. cents and 95 octane to 31 U.S. cents
Diesel, one of the most commonly used fuels, saw the biggest increase, rising to 24 U.S. cents from 21 U.S. cents.
This is the second time the government has raised fuel prices since the IMF expanded its loan programme by 5 billion U.S. dollars in March. Egypt has committed to slashing fuel subsidies as part of the agreement.
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.
In April, the IMF estimated that Egypt will spend 6.85 billion U.S. dollars on fuel subsidies in 2024/25 and 5.07 billion U.S. dollars 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. An IMF spokesperson declined to discuss those details.
The IMF is expected to disburse 820 million U.S. dollars to Egypt after concluding its review.
