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Egypt raises price of subsidised vegetable oil

An Egyptian man operates machinery in an oil production factory in Egypt, 20 September 2012 [Ed Giles/Getty Images]
An Egyptian man operates machinery in an oil production factory in Egypt, 20 September 2012 [Ed Giles/Getty Images]

Egyptian Supply Minister Ali Moselhy said today the price of subsidised vegetable oil will increase to 25 Egyptian pounds ($1.60) per litre, adding that it could be brought down if inflation cools, Reuters reports.

The country's reserves of vegetable oils are sufficient for five months, he told a news conference in Cairo.

The government raised in June the price of subsidised vegetable oils by 23.5 per cent to 21 Egyptian pounds ($1.34) per one litre bottle, following a jump in raw material costs globally.

Under the conditions set by a 2016 IMF loan, Egypt promised to reduce subsidies in order to secure $12 billion.

After Egypt floated the Egyptian pound in 2016 its currency halved against the US dollar and inflation rose over 30 per cent.

The IMF loan was intended to kick-start the economy after it crashed following the 2011 Arab uprising. Since then, terror attacks, Egypt's dire human rights record and the coronavirus pandemic have kept tourists away from the country, which has exacerbated the problem as tourism was once a major income for Egypt.

READ: Egypt suffers from water deficit of 90% of its renewable resources

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