Egypt reduces fuel prices

Egypt announced on Thursday evening the reduction in local prices of various types of fuel, to 25 piaster per litre.

The Oil Ministry announced in a statement that Egypt had cut fuel prices, in an effort to link energy prices to international markets, under the pricing mechanism supported by the International Monetary Fund.

Since it signed a three-year economic reform program with the International Monetary Fund in November 2016, the Egyptian government has increased fuel prices on four occasions, raising most energy prices to international levels.

READ: Egypt discussing possible new IMF cooperation

The statement claimed that the price of 95-octane gasoline fell from 9 to 8.75 Egyptian pounds ($ 0.5381) per litre, while the price of 92-octane gasoline fell from 8 to 7.75 Egyptian pounds per litre, and the price of 80-octane gasoline fell from 6.75 to 6.5 Egyptian pounds per litre.

The new pricing structure came into effect as of midnight last Thursday, Cairo time.

The sale price of diesel in the local market remains unchanged, while the price of a tonne of diesel for industrial uses has decreased by 250 Egyptian pounds to reach 4,250 Egyptian pounds ($ 261.38), the statement explained.

The statement added “this comes in line with the committee’s commitment to what was announced in July of last year, to apply an automatic pricing mechanism to some petroleum products, as adopted in many countries of the world.”

“The mechanism aims to adjust the selling prices of some petroleum products in the local market, up and down every quarter,” the statement clarified.

On Thursday, Egypt also slashed the price of domestic gas for cement, ceramics and metal industries.

READ: Egypt to start importing gas from Israel

The local price of gas for the cement industry was set at $6 per million British thermal units, down from $8, while the price for metallurgy and ceramics fell from $7 to $5.50.

The Egyptian pound has risen against the dollar in the past three months, to 16.26 from around 16.60. The average world record price of Brent crude oil in the international market reached approximately $62 per barrel, in the period from July to September this year.