Egypt’s PM: Diesel price hike the first in 30 months

CAIRO – 14 July 2022: In a televised comment, Egyptian Prime Minister Mostafa Madbouly defended the government’s recent decision of the fuel price hike, saying that Egypt imports a total of 100 million barrels per year and bears a large part of the costs through the fuel subsidy. 

“The price of diesel was supposed to be at LE 11; however, the state bears the largest part of the increase,” he said, adding that the state's fuel subsidy in the new budget is approximately LE 30 billion.

The prime minister said that the recent increase in diesel price was the first change to be made by the Automatic Pricing Committee in 30 months. "The maximum increase in the public transport fare is 7 percent, after the fuel price hike," he stressed.

Fuel prices in Egypt witnessed on Wednesday an increase ranging from 50 piasters to LE 1 per liter in the local markets, as per a decision issued by the Fuel Automatic Pricing Committee, the Ministry of Petroleum said in a statement.

The new prices are LE 8 for 80 octane gasoline up from LE 7.25; LE 9.25 for 92 octane gasoline up from LE 8.75; and LE 10.75 for 95 octane gasoline, up from LE 9.75. As for diesel fuel, its price went up for the first time in 30 months. The committee increased it by 50 piasters to go up to LE 7.25 from LE 6.75.

Meanwhile, the price of a ton of diesel for industries rose by LE 400, bringing it to reach LE 5,000/ton. However, the prices of diesel supplied to the food and electricity industries remained unchanged.

As for the state’s basic storage of wheat, Minister Mostafa Madbouly said that the average strategic stock of goods is enough for 6 months, adding that President Abdel Fattah El-Sisi ordered an additional financial package for the social protection program, in light of the exceptional circumstances the world is going through. He also said that those who get a monthly salary of LE 2,500 or less are exempted from paying taxes.

“The state will announce new incentives for farmers to encourage them grow wheat,” he said, noting that Egypt will continue its support for the industry of fertilizers.