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Egypt increases fuel prices, reduces subsidies

June 29, 2017 at 9:37 am

Egypt today increased gasoline and diesel prices in the second fuel hike since a currency floatation in November last year.

Fuel price increases had been widely expected as part of Egypt’s $12 billion International Monetary Fund loan agreement, but the hikes were bigger than anticipated by Egyptians already hit by a weaker currency and higher living costs.

Petroleum Minister Tarek El Molla told Reuters the price of 92-octane gasoline rose to five Egyptian pounds ($0.2767) from 3.5 pounds per litre and diesel and 80-octane, the most commonly used fuel category, increased to 3.65 pounds per litre from 2.35 pounds per litre.

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He said the total amount of subsidies for petroleum products in 2017-2018 will decrease to 110 billion Egyptian pounds ($6.09 billion) from 145 billion Egyptian pounds ($8.02 billion).

The government also doubled the price of cooking gas cylinders to 30 Egyptian pounds ($1.66) from 15 pounds per cylinder.

Egypt’s economy has been struggling since a 2011 uprising drove foreign investors and tourists away.