Egypt's Prime Minister defends fuel-price increase

Egypt's prime minister defended his government's sudden hike in fuel prices on Saturday, saying leaving the nation's bloated subsidies program unreformed would be a "crime," as transportation workers held wildcat strikes to protest the sharp increases.

Ibrahim Mehleb's comments came at a hastily organized news conference hours after Egypt unexpectedly raised fuel prices as much as 78% at midnight Saturday. The move, long seen as a necessary step toward economic reform, appeared to take the public by surprise despite repeated statements by Egypt's newly elected President Abdel Fattah Al Sisi hinting at austerity measures.

Egypt's public, nearly 50% of whom live at or below the poverty line of less than $2 a day, has long relied on government-subsidized fuel, bread and energy that account for nearly one-third of the nation's budget.

Successive Egyptian regimes have resisted reforming the subsidies system out of fear of public outrage and unrest.

Mr. Mehleb sought to allay concerns among the public, saying curbing subsidies spending would free money for social services like health care and education.

He framed the cuts in subsidies as bringing Egypt closer to achieving "social justice."

On Saturday, Egyptians awoke to reports leaked to local news media that fuel prices had increased dramatically across the board, leading to localized protests by taxi drivers and drivers of microbuses, a mode of transportation heavily used by the working class. There was also wide-scale fear that the increases in fuel prices would drive price increases on other goods.

Streams of white taxis blocked major boulevards in the capital while state media reported scuffles at gas stations. Some taxi drivers who did work refused to activate their meters, insisting instead on a fixed rate much higher than the metered rate.

"The government doesn't care about us working people," said Mohamed Amin, a 28-year-old Cairo cabdriver who said he attended a strike early on Saturday. "Just look at the way they did this: without any notice and by a drastic fraction."