The Egyptian government increased fuel prices on Thursday following the Central Bank of Egypt’s decision to float the Egyptian pound.
The new price for octane 80 and diesel will be EGP 2.35 compared to EGP 1.80. Octane 92 will be EGP 3.50 instead of EGP 2.35.
The price of small butane gas cylinders reached EGP 15 instead of EGP 12.5 while the price of large cylinders reached EGP 30 compared to the previous price of EGP 25. Natural gas reached EGP 0.75 per cubic metre instead of EGP 0.4.
The government’s decision comes in line with promises to reduce fuel subsidies according to the reform plan that was agreed upon with the International Monetary Fund in order to secure a $12bn loan.
The budget for fuel subsidies for the fiscal year 2016/2017 stands at EGP 35bn. According to government sources, the decision aims to decrease the budget deficit.
The source added that the US dollar was calculated in the budget at EGP 9.25 per dollar, and the government had to act quickly following the CBE’s decision to float the Egyptian pound.