Latest news with #LE17
Egypt Independent
27-03-2025
- Business
- Egypt Independent
Egypt announces three more fuel price hikes by end of 2025
Egyptian Prime Minister Mostafa Madbouly announced that the government will continue implementing its plan to gradually lift fuel subsidies until the end of 2025. During a Wednesday press conference at the Cabinet headquarters in the New Administrative Capital, Madbouly denied any intention by the government to eliminate the remaining subsidies in one go. He pointed out that the government has adhered to its previous commitments and that the period from October 2024 to March 2025 did not witness any price adjustments – in line with the promise not to increase prices for six months. The government is monitoring the daily price movements of goods in the markets, he added, stating, 'Our goal is to stop the bleeding of subsidies while maintaining cross-subsidization for some products such as diesel and butane cylinders.' According to Madbouly, these upcoming increases will be determined by the automatic pricing committee for petroleum products, which will hold its next meeting in April. There will be three additional increases until December, with rates not exceeding 10 percent each time, according to estimates by economic experts. The Prime Minister stressed that the government is seeking to mitigate the social impact of these increases, referring to the social protection packages recently announced, including salary and pension increases that will begin in July with the new fiscal year. He affirmed that diesel, the lifeblood of transportation and industry, will continue to receive partial subsidies even after the plan ends given its direct impact on commodity prices. Economic pressures The Egyptian government's statements come amid increasing economic pressures facing Egypt, as the government seeks to reduce the subsidy bill, which exceeded LE154 billion (US$3.02 billion) in the fiscal year 2024/2025, according to data from the Ministry of Finance. Egypt relies on imports for about 40 percent of its fuel needs, making it vulnerable to fluctuations in global oil prices and the exchange rate, where the dollar has reached about LE51 in the official market. The government began its economic reform program in cooperation with the International Monetary Fund in 2016, which includes gradually lifting energy subsidies to reach fair pricing by the end of 2025. In 2024, fuel prices witnessed three increases, the latest of which was in October, when the price of 95-octane gasoline rose to LE17 per liter and diesel to LE11.5.
Egypt Independent
15-03-2025
- Business
- Egypt Independent
Is a new increase in Egypt's fuel prices imminent following the Prime Minister's statements?
Rising fuel prices in Egypt have become a growing public concern, especially following Prime Minister Mostafa Madbouly's statements during the weekly cabinet meeting which raised questions about the possibility of completely lifting fuel subsidies before the end of 2025. As markets await the decision of the Automatic Petroleum Pricing Committee in April, expectations vary regarding the possibility of a new increase in fuel prices, given ongoing economic pressures and rising global oil prices, as well as fluctuations in the US dollar exchange rate against the Egyptian pound. Is there a date for the fuel price increases? According to the government's announced policies, the Automatic Pricing Committee meets every three months to review fuel prices, and the new prices are expected to be announced in April. This step comes as part of the government's plan to achieve gradual balance between fuel costs and their actual price, according to official statements. Cabinet spokesperson Mohamed al-Homsany confirmed during a phone interview with the 'Sada al-Balad' TV channel that the state will continue to subsidize diesel and butane gas even with the increase in octane prices, given their direct impact on the prices of daily goods and services for citizens. Current octane and diesel prices in Egypt: 95-Octane: LE17 per liter. 92-Octane: LE15.25 per liter. 80-Octane: LE13.75 per liter. Diesel: LE13.50 per liter. Kerosene: LE13.50 per liter. Mazut for industries: LE9,500 per ton. Natural gas price for vehicle fueling: Seven LE per cubic meter. Current Butane cylinder prices in Egypt: 12.5 kg cylinder: Official price LE 150, and sold at some retailers for LE 170. 25 kg cylinder: Official price LE 200, and sold for LE 220. Will subsidies be lifted on diesel and butane gas? The Prime Minister confirmed that the government is seeking to gradually lift subsidies on petroleum derivatives, but partial subsidies will remain in place for diesel and butane gas cylinders. He also explained that the difference will be made up from the profit margin of other products, without impacting low-income citizens. Edited translation from Al-Masry Al-Youm
