Prior to an IMF assessment, Egypt increases domestic fuel prices by up to 15%

Four days before the International Monetary Fund (IMF) performs a third assessment of its extended $8 billion loan package for the country, Egypt increased the prices of a wide range of gasoline items on Thursday, according to the official gazette.

Fuel prices increased by up to 15% per liter, according to the official gazette, which cited the petroleum ministry. For example, 80 octanes now cost 12.25 Egyptian pounds ($0.25), 92 octanes cost 13.75 pounds, and 95 octanes cost 15 pounds.

The most significant increase was seen in diesel, one of the most widely used fuels, which went from 10 Egyptian pounds ($0.24) to 11.50 Egyptian pounds.
Since the IMF increased the size of its lending package by $5 billion in March, the government has increased fuel prices twice. Egypt agreed to reduce fuel subsidies as a condition of the deal.

Taxi driver Sayed Abdo was among the Egyptians who talked to Reuters and expressed dissatisfaction about the measure that will automatically raise prices for everyday commodities on Thursday.

“Due to increased fuel expenses, I will need 15 Egyptian pounds from you if you travel with me today. Normally, I ask for 10 pounds. That’s typical, as I go grocery shopping and what I used to buy with 10 Egyptian pounds now costs 15,” he remarked.

“We don’t know where we’re headed with these prices.”

Petroleum product prices will rise gradually through the end of 2025, according to Prime Minister Mostafa Madbouly, who also stated that the government could no longer afford to support rising demand.

In addition, Madbouly stated that blackouts had ceased at the beginning of this week for Egyptians, as the nation struggled to import enough natural gas to combat the summer heat.

The IMF projected in April that Egypt’s fuel subsidies will cost 331 billion Egyptian pounds ($6.85 billion) in 2024–2025 and 245 billion in 2025–2026.

Originally scheduled for July 10, the IMF’s approval for the expanded loan program’s third review was rescheduled for July 29. The lender justified the postponement by stating that certain policy specifics needed to be finalized. An IMF representative declined to go into those specifics.

When the IMF completes its review, Egypt is anticipated to get $820 million.

$1 is equal to 48.2900 Egyptian pounds.