On Thursday, Egypt raised the prices of a wide range of fuel products, four days before the International Monetary Fund conducted a third review of an expanded loan program for the country worth eight billion dollars, the Official Gazette reported.
According to the decision of the Egyptian Ministry of Petroleum, the price increase was as follows:
Gasoline 80: rose from 11 pounds to 12.25 pounds, an increase of 11.4 percent.
Gasoline 92: increased from 12.5 pounds to 13.75 pounds, an increase of 10 percent.
Gasoline 95: rose from 13.5 pounds to 15 pounds, an increase of 11.1 percent.
Diesel: rose from 10 pounds to 11.5 pounds, an increase of 15 percent.
This is the second time that the government has raised fuel prices since the International Monetary Fund expanded its loan program for the country by five billion dollars in March. Egypt pledged to reduce fuel subsidies as part of its agreement with the Fund.
Prime Minister Mostafa Madbouly said yesterday, Wednesday, that the prices of petroleum products will rise gradually until the end of 2025, and added that the government can no longer bear the burden of increased consumption.
International Monetary Fund estimates in April concluded that Egypt would spend 331 billion Egyptian pounds ($6.85 billion) on fuel subsidies in 2024-25 and 245 billion ($5.07 billion) in 2025-2026.
The Fund was originally expected to approve the third review of the expanded loan program on July 10, but was postponed to July 29, which the Fund attributed to finalizing some policy details. A spokeswoman for the fund declined to reveal these details.
The fund is expected to disburse a tranche worth $820 million to Egypt after completing the review.
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