Egypt Raises Diesel Prices in Response to International Crude Oil Price Increases

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On Wednesday, the Fuel Automatic Pricing Committee (FAPC) announced that it has raised diesel prices by EGP 1 to 8.25 Egyptian pounds, while the prices of all other gasoline types remained unchanged.

The decision was made due to “the increase in international prices for crude oil and petroleum products and the exchange rate of the pound against the dollar,” according to the FAPC statement.

This is the second meeting of the FAPC in 2023, following a March meeting where fuel prices were raised but diesel prices were left unchanged.

The prices of other gasoline types remained unchanged, with 80-octane gasoline at EGP 8.75 per liter, 92-octane gasoline at EGP 10.25 per liter, and 95-octane gasoline at EGP 11.50 per liter.

The price of Mazut, which is used for non-electricity and bakery purposes, was also left unchanged at EGP 6,000 per ton. The FAPC decision came into effect on Thursday at 2:00 am Cairo Time (GMT+3).

The FAPC has been conducting quarterly reviews since 2019, considering global markets and exchange rates.

Under its ongoing loan deal with the International Monetary Fund (IMF), the government has committed to fully implementing the fuel price indexation mechanism by refraining from applying any formulaic decreases in fuel prices until fuel subsidies, for each product subject to the mechanism, have been eliminated.

In April, the Ministry of Finance announced that it had allocated EGP 119.4 billion to subsidise petroleum products in the 2023/2024 fiscal year.