Egypt fuel prices rise by up to 30% amid global pressures

Egypt has increased domestic fuel prices by up to 30 percent, citing “exceptional” global energy pressures linked to the ongoing conflict in the Middle East. Officials say the war has disrupted oil supplies and key shipping routes, driving up global costs, according to Africa News  via AFP on March 10th.

The price hikes were announced by the petroleum ministry and affect gasoline, diesel and natural gas used for vehicles. In a statement, the ministry said the decision was prompted by disruptions in global supply chains, rising geopolitical risks, and higher maritime shipping and insurance costs. These factors, it said, have pushed petroleum product prices to “levels not seen in years.”

Global oil markets have been highly volatile. On March 9th, crude prices briefly rose above $119 per barrel amid fears that the Middle East conflict could disrupt supplies. Prices later dropped to around $84 after US President Donald Trump said the war between the US, Israel and Iran could end soon.

In Egypt diesel increased by three Egyptian pounds per litre, rising from 17.50 pounds to 20.50 pounds, a jump of about 17 percent.

Gasoline prices also rose across all grades. The price of 80-octane gasoline increased by roughly 16.9 percent to 20.75 pounds per litre, while 92-octane gasoline climbed about 15.6 percent to 22.25 pounds. Higher-grade 95-octane gasoline rose by around 14.3 percent, reaching 24 pounds per litre.

Natural gas used for vehicles recorded the largest increase, rising by 30 percent to 13 pounds per cubic metre.

Egypt has raised fuel prices several times in recent years as part of economic reforms tied to an $8 billion loan programme with the International Monetary Fund. The government has been gradually reducing fuel subsidies as part of the agreement.

A price increase of up to 13 percent in October had been expected to be the final adjustment under the IMF-backed plan, but the latest surge in global energy costs has led authorities to introduce another round of hikes.

Africa News via AFP, magrebi.org