Egypt raises fuel prices by up to 78%

Egypt has raised fuel prices, by up to 78 per cent, for the first time since 2008, Anadolu news agency reported on Friday. The price increase has reportedly been implemented across the country starting from Friday midnight. According to government sources who spoke to Anadolu, fuel stations have been informed of the decision and will introduce the new prices from Saturday.

The price of 80 octane petrol has been raised from 90 piasters to 1.6 Egyptian pounds (an increase of 77.7 per cent), while 92 octane has increased from 1.85 pounds to 2.6 pounds (40.5 per cent), according to a leaflet distributed to petrol stations nationwide. Moreover, the price of diesel increased from 1.1 to 1.8 pounds, up by 63.3 per cent.

The Egyptian government says that it is seeking to cut fuel subsidies by 44 billion Egyptian pounds (around $6 billion) in the current fiscal year, to just over 100 billion ($15 billion).

Minister of Supply Khaled Hanafy said in press statements on Friday that the prices of diesel and gas for bakery owners would remain unchanged and would not be affected by the price hikes in the energy sector.

According to the Central Agency for Public Mobilisation and Statistics, 4.5 million vehicles use petrol, equivalent to 66.7 per cent all licensed cars at the end of June 2013. Around 1.65 million vehicles, 24.5 per cent, use diesel fuel; just 589,140 vehicles use natural gas.