Egypt‘s Ministry of Petroleum and Mineral Resources declared on Thursday that fuel prices will be hiked for the second time in 2024. The increase ranges from 10% to 15%, effective immediately.
This announcement followed shortly after Prime Minister Mostafa Madbouly stated that the government intends to gradually raise prices on all services, including fuel, to eliminate subsidies and achieve a break-even point by December 2025. The new fuel prices are as follows:
- Diesel is now EGP 11.5 per litre, a 15% increase from EGP 10.
- Octane 80 is now EGP 12.25 per litre, up 11.4% from EGP 11.
- Octane 92 is now EGP 13.75 per litre, up 10% from EGP 12.50.
- Octane 95 is now EGP 15 per litre, up 11.1% from EGP 13.50.
- Kerosene is now EGP 11.5 per litre, up 15% from EGP 10.
Industrial Mazut has risen by 13% to EGP 8,500 from EGP 7,500, although prices for mazut supplied to power plants and the food industry remain unchanged.
The increase is expected to temporarily boost inflation following several months of decline.
Despite this, PM Madbouly assured on Wednesday that the government aims to reduce inflation to 10% by the end of 2024.
This follows the Central Bank of Egypt’s recent Monetary Policy Committee (MPC) meeting where the bank forecasted a significant inflation decrease in the first half of 2025, influenced by strict monetary policies and favorable base effects since the start of the Ukrainian conflict in March 2022.
However, the central bank has expressed concerns over potential risks that could affect the anticipated disinflation, including ongoing global conflicts, adverse weather conditions, and unforeseen fiscal measures.
Additionally, Egypt is currently participating in an $8 billion loan agreement with the International Monetary Fund, which includes a commitment to phase out fuel subsidies as part of efforts to reduce the national budget deficit, with the next review of this program scheduled for Monday, July 29.
