Egypt implemented a fuel price hike on Friday, increasing rates by 10% to 17%, a decision expected to affect the prices of goods and services.
The Egyptian government said in a statement on Facebook that the decision was made in order to “reduce the gap between the selling prices of petroleum products and their high production and import costs.”
Egyptians continue to face skyrocketing inflation, grappling with rising daily expenses, which hit new highs over the summer. This includes a 10% rise in fuel prices, increased subway fares, and a weakening local currency against foreign counterparts.
As of Friday, new fuel prices took effect, with the cost of a litre of diesel, widely used in public transport, rising from 11.5 pounds ($0.23) to 13.50 pounds ($0.25). Meanwhile, the price of 92-octane gasoline increased from 13.75 pounds ($0.28) to 15.25 pounds ($0.31).
The previous fuel hike occurred on July 25, following an earlier increase in March, which the government attributed to rising import costs due to the depreciation of the Egyptian pound and the global fuel price surge, particularly amid tensions in the Red Sea region.
Earlier this year, Egypt secured a deal with the International Monetary Fund (IMF) to expand its bailout package to $8 billion. The fuel price hikes have been seen as necessary steps to comply with the IMF’s conditions for continued financial support.