Egypt has announced a significant increase in diesel prices, reflecting the recent surge in global crude oil prices and the decline of the local currency. Starting on Thursday, diesel will cost users 8.25 Egyptian pounds ($0.27) per litre, a near 14% increase of 1 pound.
The decision was made “in light of the increase in international prices for crude oil and petroleum products and the exchange rate of the pound against the dollar”, according to a statement by Egypt’s domestic fuel pricing committee. As a result, public bus fares will also be increased by 10%, as announced by the Egyptian Ministry of Local Development.
However, the price of petrol will remain unchanged. Earlier this year, in March, the committee raised domestic fuel prices for 80-octane petrol to 8.75 pounds per litre and 92-octane fuel to 10.25 pounds per litre. Premium 95-octane petrol prices were also increased to 11.50 pounds per litre.
The price of natural gas for vehicles experienced an increase as well, rising from 3.75 pounds per cubic metre to 4.50 pounds. In order to secure funding from the International Monetary Fund, Egypt has committed to gradually reducing subsidies for its population of 104 million, approximately 30% of whom live below the poverty line.
For the 2023/2024 fiscal year, Egypt’s Finance Ministry has allocated 119.4 billion Egyptian pounds, or around $3.8 billion, to subsidise petroleum products. The committee, which meets quarterly, monitors and implements involuntary pricing for petroleum products.
As of Thursday, May 4, the diesel price will be set at LE8.25 per litre. Meanwhile, Octane products of all three types have fixed prices: LE 8.75 per litre for Octane 80, LE10.25 per litre for Octane 92, and LE 11.5 per litre for Octane 95. The price of Mazut supplied to the electricity and food industries has also been fixed at LE6,000 per ton.
The Egyptian Petroleum Products Automatic Pricing Committee meets every three months to set the prices of gasoline and diesel fuel, taking into account market variables such as the international price of a barrel of Brent crude and the exchange rate of the US dollar against the Egyptian pound.