Egypt will be saving 20% in diesel subsidies after recent price increase

On Wednesday, in its quarterly review meeting, the Fuel Automatic Pricing Committee (FAPC) raised the price of diesel by 13.7 percent - from EGP 7.25 to EGP 8.25.

The petroleum ministry ascribed the FAPC decision to raise the price of diesel to the increase in petroleum products in global markets as well as the devaluations of the Egyptian pound between July 2022 and April 2023 due to the ramifications of the conflict between Ukraine and Russia.

The ministry explained the government will be subsidising diesel for consumers at EGP 4 per litre, given that the actual cost of diesel increased to EGP 12.25 per litre.

Under the IMF-backed recent $3 billion loan deal, Egypt is committed to fully implement the fuel price indexation mechanism.

The government committed in this regard to refrain from applying any formulaic decreases in fuel prices until fuel subsidies, for each product subject to the mechanism, have been eliminated in the FY 2021/2022.