Khaberni - The Egyptian Official Gazette said that the government raised prices for a wide range of fuel products on Friday, in an increase that is the second this year in line with government policies aimed at reducing subsidies and easing the country's budget deficit.
The increase ranged between 10.5% and 12.9% for various petroleum products and came after a nearly 15% hike in April.
The Egyptian Ministry of Petroleum announced the fixing of local fuel prices for at least a year after raising them on Friday "due to events occurring on the local, regional, and global stages."
The ministry added that the petroleum sector will continue "to operate refineries at full capacity as well as settling arrears with partners and establishing incentives for partners, which greatly contributes to increasing production and decreasing the import bill to achieve relative cost stability and reduce the gap between it and the selling prices."
Gasoline prices rose by up to 12.7% depending on the type.
The Official Gazette stated "the selling price of 80 octane gasoline per liter to the consumer is determined at 1775 piasters. The selling price of 92 octane gasoline per liter to the consumer is determined at 1925 piasters including value-added tax. The selling price of 95 octane gasoline per liter to the consumer is determined at 2100 piasters including value-added tax."
The government raised the price of diesel, one of the most commonly used fuels in the country, by two Egyptian pounds ($0.0421) to 17.50 Egyptian pounds per liter from 15.50 pounds.
The International Monetary Fund stated in March that Egypt remains committed to reducing energy subsidies and aligning local prices with actual costs by next December, while working to reduce the large deficit in the current account balance.
The government stated that it will continue to support diesel even if it requires raising the prices of other types of fuel above cost to cover the subsidy.
The IMF has pressured the Egyptian government to cut subsidies on fuel, electricity, and food while expanding social safety networks under an eight billion dollar loan.
In the second quarter, the current account deficit was $2.2 billion, with imports of petroleum products rising to $500 million from $400 million in the previous year, according to data from the Central Bank of Egypt.
