Egypt raises petrol prices by 14 per cent in second increase this year

Government raised petrol prices in March and raised diesel prices in May

The price of a litre of 80-octane petrol has increased from 8.75 to 10 Egyptian pounds. Getty Images

Petrol prices in Egypt were raised by more than 14 per cent on Friday, the second increase this year.

The price of a litre of 80-octane petrol increased to 10 Egyptian pounds ($0.28-$0.32) from 8.75 pounds, a Petroleum Ministry statement said.

Buyers of 92 and 95-octane gasoline will now pay 11.50 pounds and 12.50 pounds a litre, respectively, compared with the previous 10.25 pounds and 11.50 pounds.

Diesel prices remained unchanged.

The price increases are expected to lift the cost of most goods at a time when the weakening economy is making it harder for many Egyptians to make ends meet.

Annual headline inflation rose to a record 38 per cent in September, continuing a rise since March when the fuel-pricing committee raised petrol prices by about 14 per cent and maintained diesel prices.

Then on May 4, diesel prices were increased by almost 14 per cent.

Fares for public buses, which run mainly on diesel and natural gas, were also increased.

The Petroleum Ministry estimated those increases would save 16 billion pounds ($517 million) or 20 per cent of the annual diesel subsidies bill.

The Egyptian government had turned to the International Monetary Fund for help, reaching a deal last year for a $3 billion loan to shore up its finances.

The IMF agreed to the deal in return for major reforms, including a flexible foreign exchange regime and the private sector being allowed a greater economic role.

The Egyptian government has budgeted 119.4 billion pounds for fuel and electricity subsidies for the 2023/24 fiscal year.