Egypt’s petroleum ministry announced on July 5 raising fuel prices between 16% and 30%, marking the latest round of fuel subsidy cuts, Invest-Gate reports.
Gasoline and diesel fuel prices increased by EGP 1.25 per liter, according to a recent ministerial statement. The 95 octane gasoline cost hiked to EGP 9 from EGP 7.75 per liter. Meanwhile, 92 octane gasoline spiked from EGP 6.75 to EGP 8 per liter, while the cost of Gasoline 80 leaped to EGP 6.75 from EGP 5.5 per liter.
On another note, the production costs of all building materials are expected to rise accordingly, yet no official figures have been released for the new increases so far.
Being the second rise since the government floated the currency in November 2016, fuel subsidy cuts are part of Egypt’s three-year loan accord with the International Monetary Fund (IMF) to revive the country’s economy.
Government officials told UK-based news organization Reuters that “short-term austerity under the IMF plan will free up more financing for infrastructure and help draw foreign investment to help create jobs and economic growth.”
In the same context, Egypt is expected to receive the second IMF loan installment of USD 1.25 bn within the coming few weeks.