Egypt hikes fuel prices by up to 15% ahead of IMF review

Image credit: KHALED DESOUKI/ Getty Images

Egypt raised the prices of a wide range of fuel products on Thursday, the official gazette said, four days before the International Monetary Fund (IMF) conducts a third review of its expanded $8bn loan programme for the country.

The official gazette, citing the petroleum ministry, said petrol prices increased by up to 15 per cent per litre, with 80 octane rising to EGP 12.25 ($0.25), 92 octane to EGP 13.75 and 95 octane to EGP 15.

Diesel, one of the most commonly used fuels, saw the biggest increase, rising to EGP 11.50 ($0.24) from EGP 10.

This marks the second time the government has raised fuel prices since the IMF expanded its loan program by $5bn in March. Egypt has committed to slashing fuel subsidies as part of the agreement.

But Egyptians who spoke to Reuters, including taxi driver Sayed Abdo, complained that Thursday’s move would mean an automatic increase in prices for daily goods.

“If you ride with me today and usually pay EGP10, I will ask you for EGP15 because fuel prices are raised. That’s normal because when I go get food, what I used to buy with EGP10 becomes now for EGP15,” he said.

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

On Wednesday, Prime Minister Mostafa Madbouly said prices of petroleum products will gradually increase until the end of 2025, adding that the government could no longer bear the burden of increasing consumption.

Egyptians have also endured blackouts, which Madbouly said had ended at the start of this week, as the country struggled to import sufficient natural gas to tackle the summer heat.

In April, the IMF estimated that Egypt will spend EGP331bn ($6.85bn) on fuel subsidies in 2024/25 and EGP245bn in 2025/26.

The IMF’s approval for the third review of the expanded loan program was originally expected on July 10 but was pushed back to July 29. The fund attributed the delay to the finalisation of some policy details. An IMF spokesperson declined to discuss those details.

The IMF is expected to disburse $820m to Egypt after concluding its review.

Read: Egypt’s central bank leaves key interest rates unchanged