Egypt hikes fuel prices by up to EGP 1 per litre for multiple octanes
Egypt’s Fuel Automatic Pricing Committee (FAPC) has announced an increase in the prices of various octanes by EGP 0.75 to EGP 1 per litre. The prices of diesel, on the other hand, will remain unchanged. This decision has been made in response to the volatility of Brent crude prices and fluctuations in the exchange rate of the pound against the dollar.
The FAPC, which is responsible for setting fuel prices in Egypt based on market conditions, reviews fuel prices every quarter. The new fuel prices will take effect immediately and are expected to impact millions of drivers across the country.
The Egyptian government had previously subsidized fuel prices to ease the financial burden on its citizens. However, the rising global oil prices and the weaker Egyptian pound have made it necessary for the government to adjust its pricing policy to reflect the changing economic conditions.
The recent fuel price hike is likely to have a significant impact on the cost of living for many Egyptians, who are already facing economic challenges due to various factors. Nevertheless, the FAPC remains committed to ensuring a fair pricing system that reflects the prevailing market conditions.
Egypt’s Fuel Automatic Pricing Committee (FAPC) has announced a 20% increase in the price of Mazut for non-electricity and bakery uses, from EGP 5,000 per ton to EGP 6,000 per ton. The price increase will impact various sectors, including power generation and the bakery industry.
Moreover, Egypt’s Fuel Automatic Pricing Committee (FAPC) has announced another increase in the price of natural gas for vehicles to EGP 4.50 per metre. This marks the first fuel price adjustment of 2023 by the committee, which convenes quarterly to assess petroleum product prices and provides non-committal recommendations for fuel price movement.
The FAPC’s last meeting in October 2022 resulted in a decision to maintain fuel prices until the end of December, following a previous increase in July 2022. Any price adjustments are limited to a cap of 10%.
As part of the IMF’s $3 billion loan programme, which commenced in late December, Egypt has committed to a flexible exchange rate monetary policy regime and eliminating fuel subsidies for each product subject to the mechanism in the FY2022/2023. Over the past year, the country refrained from formulaic decreases in fuel prices despite rising oil prices.
Despite the devaluation of the Egyptian pound, with one US dollar currently worth EGP 30.6, the average annual price of Brent crude oil was around $82.5 per barrel as of January 2023, according to Statista, approximately $18 lower than the average in 2022. The FAPC’s latest price adjustment reflects its ongoing efforts to ensure fair pricing in accordance with market conditions.