Egypt on Friday increased fuel prices for the second time this year, as part of ongoing efforts to reduce subsidies and narrow its widening budget deficit.
According to the country’s official gazette, the government raised prices across a range of petroleum products by between 10.5% and 12.9%, following a nearly 15% hike in April.
The Ministry of Petroleum said the new prices would remain in place for at least one year, citing local, regional, and global economic factors. It added that Egypt’s refineries would continue to operate at full capacity while the government settles arrears owed to partners and introduces measures to boost domestic production and cut import costs.
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Diesel, one of the country’s most widely used fuels, rose by 2 Egyptian pounds ($0.04) to 17.50 pounds per litre from 15.50 pounds. Gasoline prices also climbed, with 80 octane rising to 17.75 pounds per litre, 92 octane to 19.25 pounds, and 95 octane to 21 pounds representing an increase of up to 12.7% depending on the grade.
The government said it would continue to subsidise diesel, even if that required increasing the prices of other fuels above cost to offset the subsidy burden.
The International Monetary Fund (IMF), which approved an $8 billion loan for Egypt, has urged Cairo to scale back subsidies on fuel, electricity, and food while expanding social protection for vulnerable citizens.
In March, the IMF reported that Egypt remained committed to aligning domestic energy prices with real market costs by December 2025 as part of efforts to reduce its current account deficit, which stood at $2.2 billion in the second quarter of the year.
The latest price adjustment underscores Egypt’s continued struggle to stabilise its economy amid high inflation, a weakening currency, and pressure from rising global energy costs.
