Egypt increases domestic fuel prices

Egypt increased prices on various fuel products, the second increase this year, Reuters reported on October 17th citing Egypt’s official gazette.

​Diesel, one of the most widely used fuels, saw its price increase to 17.50 Egyptian pounds (£0.27) per litre from 15.50 (£0.24). Gasoline prices increased by up to 12.7% depending on the grade. 

​The increase comes after Egypt increased prices by almost 15% in April. The petroleum ministry of Egypt said the government would freeze domestic fuel prices for at least 12 months after the increases on October 17th, due to local, regional and global developments.

​The government has been urged by the International Monetary Fund (IMF) to cut fuel, electricity and food subsidies while widening social safety nets under an $8 billion (£6 billion) loan.

​Egypt’s current account deficit stood at $2.2 billion (£1.6 billion) in the second quarter, and according to data from the country’s central bank, imports of oil products rose to $500 million (£372 million) from $400 million (£298 million) a year before.

​According to the IMF, the country remains committed to reducing its energy subsidies and bringing down prices in line with costs by December as it works to reduce its deficit.

The government said it would increase prices of other fuels and would proceed with subsidising diesel. It also said that the petroleum sector will proceed with running its refineries at full capacity.

It was reported ​last month, that a fuel shortage in Zliten, Libya, forced 35 bakeries to close and threatened water and food security. A number of fuel stations were closed, exacerbating an already major crisis and making it a challenge to keep the power grid operational.

​Libya’s National Oil Corporation makes sufficient fuel to meet the country’s demand, but a large amount is smuggled out of Libya. 

​Meanwhile, Islamist militant group JNIM enforced a fuel blockade on key regions in Mali, which has seen some areas experience a rise in fuel prices due to a reduction in energy.

​JNIM has been stopping fuel truck movements across the country, even releasing videos of militants opening fire at tanker trucks. 

Reuters, Egypt’s official gazette, Mahgrebi.org