Further fuel price hikes needed: Analysts

Egypt might need a second hike in fuel prices since President Abdel-Fattah El-Sisi came to power last June, analysts predict, despite lower global oil prices and savings in domestic consumption.

The move would be part of the government’s five-year fiscal reform programme to reduce the budget deficit and cut energy subsidies. The programme began in July 2014, and one of the first measures implemented was an increase in fuel prices of up to 78 percent at the pump.

"Further energy price hikes will be needed sooner rather than later if the government is to make substantial inroads into the budget deficit and place the public finances on a more substantial footing," Jason Tuvey, economist at Capital Economics told Ahram Online.

Neither the draft state budget for the 2015/2016 fiscal year, nor a statement by Egyptian General Petroleum Corp (EGPC), pointed to energy price increases in the coming fiscal year.