How Egypt promotes its fuel price increase
An Egyptian government advertising campaign paves the way for a fuel price increase for the fifth time since President Abdel Fattah al-Sisi took power — but is this in the citizens’ best interest?
CAIRO — The Egyptian government announced July 5 an increase ranging between 16% and 30% of the price of fuel and petroleum products. This is the fifth increase in fuel prices since 2014, as part of what the government calls reforming the energy subsidies system.
The price of gasoline 92 octane rose by 18.5% to 8 Egyptian pounds ($0.50) per liter, gasoline 80 octane rose by around 22.7% to 6.75 pounds ($0.40) per liter, gasoline 95 octane rose by 16.1% to 9 pounds ($0.54) per liter and the price of diesel and kerosene rose to 6.75 pounds per liter at a rate of about 22.7%.
The government also increased the price of domestic gas cylinders to 65 pounds ($3.90) per cylinder from 50 pounds ($3), an increase of 30%. The price of a commercial gas cylinder was upped by 30%, to 130 pounds ($7.80) from 100 pounds ($6).
Egypt has been lifting fuel subsidies to meet the conditions set by the International Monetary Fund (IMF), which agreed to grant Egypt a three-year $12 billion loan facility on Nov. 11, 2016. These conditions mostly include the introduction of value-added tax (VAT), the devaluation of the Egyptian currency and lifting government fuel subsidies.
