Petrol will cost up to 15 percent more from Friday.
Published On 25 Jul 202425 Jul 2024
Egypt is raising fuel prices for the second time in four months, fulfilling an economic reform condition set by the International Monetary Fund (IMF) to unlock hundreds of millions in new loans.
Egypt’s official gazette reported an up to 15 percent price hike for petrol on Thursday, four days before the IMF is to review its $8bn loan programme, the next tranche of which is $820m.
The new prices will take effect on Friday, said Egypt’s Ministry of Petroleum and Mineral Resources.
Petrol prices jumped about 15 percent and will now range from 12.25-15 pounds ($0.25-$0.31) per litre.
The decision will also make diesel, one of Egypt’s most commonly used fuels, costlier, taking its price from 10 Egyptian pounds ($0.21) to 11.50 pounds ($0.24).
Lifting fuel subsidies
As part of its IMF bailout deal, Egypt agreed to gradually slash fuel subsidies, which take up a chunk of its cash-strapped budget.
Egypt introduced an initial round of price hikes in March to bring domestic prices somewhat in line with those in international markets. It aims to fully remove fuel subsidies by the end of 2025, according to government spokesperson Mohamed el-hom*ossan.
The move comes as Egypt battles its worst economic crisis in more than a decade, with ballooning foreign debt driving up inflation and causing several consecutive devaluations of the local currency.
Inflation peaked at nearly 40 percent last year, before winding down to 27.5 percent in June.
Nearly 30 percent of Egyptians live in poverty, according to official figures.
Alongside the economic crisis, Egypt has also been caught in regional tensions, with bloody wars raging in neighbouring Gaza and Sudan.
Attacks by Yemen’s Iran-aligned Houthis on shipping around the Red Sea have also hit revenues from Egypt’s Suez Canal, recording a 23.4 percent drop in the 2023-24 fiscal year compared with the previous one.
The IMF has demanded Egypt implement wide-ranging reforms to reset its economy, including shifting to a liberal exchange regime, reducing government spending and incentivising private investment.
FAQs
Petrol will cost up to 15 percent more from Friday. Egypt is raising fuel prices for the second time in four months, fulfilling an economic reform condition set by the International Monetary Fund (IMF) to unlock hundreds of millions in new loans.
What is the price of gasoline in Egypt in 2024? ›
Egypt's Fuel Automatic Pricing Committee has adjusted the fuel prices and increased them for Q3 2024, according to a statement. According to the official statement, the adjusted prices are as follows: 95 Octane Gasoline: 15 EGP per liter. 92 Octane Gasoline: 13.75 EGP per liter.
How many IMF loans has Egypt taken? ›
Total IMF Credit Outstanding Movement From September 01, 2024 to September 16, 2024
| Member | Total IMF Credit Outstanding as of 08/31/2024 | Total Repayments |
|---|
| Dominican Republic | 179,025,000 | 0 |
| Ecuador | 6,417,187,503 | 39,141,666 |
| Egypt | 10,339,693,347 | 0 |
| El Salvador | 107,700,000 | 0 |
73 more rowsUpdated Sunday, July 28, 2024
| Type | Price (Egyptian Pound) | Unit |
|---|
| Gasoline 80 | ▲ 12.25 | Liter |
| Gasoline 92 | ▲ 13.75 | Liter |
| Gasoline 95 | ▲ 15.00 | Liter |
| Diesel | ▲ 11.50 | Liter |
4 more rowsFuel subsidies in Egypt are one of the largest expenditures in the state's general budget. This came amid demands from the International Monetary Fund (IMF) to abolish them and the government's keenness to continue them to mitigate the consequences of austerity measures on low-income people.
Is Egypt rich in oil and gas? ›
Egypt has the sixth-largest proved oil reserves in Africa. Over half of these reserves are offshore reserves.
What is the outlook for Egypt gas production? ›
Over the five years to 2023, production from Egypt decreased by a CAGR of 0.06% and is expected to drop by a CAGR of 0.91% between 2024 and 2028.
Who is the biggest borrower of IMF? ›
Who owes the IMF money?
- Argentina is the biggest debtor to the IMF, with a total outstanding debt of $42.9bn. ...
- Egypt is the second-largest debtor by amount, with an outstanding balance of $14.9bn. ...
- Ukraine also features among the IMF's largest debtors with a total outstanding debt of almost $12bn.
According to the Central Bank of Egypt, of the $52 billion the country owes to multilateral institutions, 44.7 percent is owed to the IMF. Egypt's other top foreign creditors include the UAE, Saudi Arabia, Kuwait, Japan, Germany, France, the UK, the US, and China.
Which African country is the highest borrower from the IMF? ›
Ghana has maintained its spot as Africa's most indebted country to the International Monetary Fund (IMF). Ghana's debt to the IMF increased by 35.55% over the time period under consideration, per data from the IMF's Quarterly Finances for July-ending 2023.
In 2023, Egypt climbed to the seventh position as the cheapest country globally for gasoline prices, attributed to its self-sufficiency in crude oil, fuel subsidies, and strong petroleum product management.
Where is the cheapest petrol in the world? ›
The lowest petrol rate in the world is in Venezuela, where it costs just 0.047 US cents per liter. This is due to the country's extensive oil reserves and government subsidies.
How much is a gallon of gas in Cairo, Egypt? ›
Company Matches
| Nation | City | Price in USD Regular/Gallon |
|---|
| Saudi Arabia | Riyadh | $0.91 |
| Kuwait | Kuwait City | $0.78 |
| Egypt | Cairo | $0.65 |
| Nigeria | Lagos | $0.38 |
32 more rowsUnder the pressure of rising domestic gas consumption and declining domestic production after 2006, Egypt became a gas-importing country in 2015, achieved self-sufficiency in natural gas by 2018, and resumed exports - especially after the discovery of the Zohr field in the eastern Mediterranean.
Where does Egypt export gas to? ›
Egypt operates the Suez Canal and the Suez-Mediterranean (SUMED) Pipeline; both of which are crucial midstream infrastructure for international energy markets. The Suez Canal is a transit route for oil and liquefied natural gas (LNG) shipments traveling northbound from the Persian Gulf to Europe and to North America.
Who does Egypt export petroleum to? ›
Exports The top exports of Egypt are Petroleum Gas ($9.53B), Nitrogenous Fertilizers ($3.37B), Refined Petroleum ($2.88B), Crude Petroleum ($2.85B), and Gold ($1.73B), exporting mostly to Turkey ($4.23B), Italy ($3.32B), United States ($3.21B), Spain ($3B), and India ($2.57B).
How much will gas cost in 2024? ›
U.S. Regional Gasoline Prices as of July 23, 2024
Prices on the west coast continue to slowly move to the $4 line. The national average price of gasoline is down ever so slightly, at $3.47 per gallon, according to EIA data. The 2-cent drop on the national average comes despite one region seeing a 5-cent increase.
What is the inflation rate in Egypt in 2024? ›
The annual urban inflation rate in Egypt rose to 26.2% in August 2024 from a near two-year low of 25.7% in the previous month, comfortably beating the market forecasts of 25.1%. Also, the latest reading remained significantly above the upper limit of the central bank's range of 5-9%.
What will happen to gas prices in 2025? ›
Forward markets for Henry Hub futures, the benchmark U.S. natural gas price, indicate that prices will average $3.20 per million British thermal units (mmBtu) in 2025, compared to an average of $2.22 so far this year, data from LSEG shows.
Does Egypt have a lot of gas? ›
The Zohr field is considered the largest discovery ever made in the Mediterranean Sea. Production is estimated at 30 trillion cubic feet (tcf). There is also the Nooros Gas Field in the Nile Delta that produces 32 million cubic meters per day.
