Connect with us

Hi, what are you looking for?

News Africa

Egypt hikes fuel prices amid soaring inflation in IMF backed reforms

Egypt announced a new sharp increase in fuel prices on Thursday, as it slashes government subsidies in a tough International Monetary Fund (IMF) -backed reform programme.

Fuel prices hiked up to 50 percent a sharper rise than expected for many struggling with extremely high living costs.

The cabinet said that 82 octane petrol would sell for 3.65 Egyptian pounds a litre up from 2.35, with the same increase for diesel, while 92 octane petrol rose from 3.5  to 5.0 Egyptian pounds.

The government also increased the price of cooking gas cylinders – used mostly by poorer Egyptians – by 100 percent to 30 pounds ($1.66) from 15 pounds per cylinder.

Prime Minister Sharif Ismail said the fuel subsidies were straining government financing.

The projection for next year at the same levels “is 150 billion pounds. This is a big number that neither the oil sector nor the budget can handle,” he said in a press conference.

The government plans to provide “less subsidies for fuel and to divert it to other sectors” such as development, he added.

The government first increased fuel prices in 2014 and again in November last year after floating the pound.

In 2015, Egypt embarked on an ambitious reform programme to revive the economy that includes lifting subsidies, raising taxes and loosening capital controls as part of a three-year IMF agreement.

Egypt has to meet the terms of the deal to secure a $12 billion IMF loan deal. It will receive a second installment of $1.25 billion of the loan within the coming few weeks.

The north African country has been struggling since the 2011 uprising and many Egyptians have been hit hard by record inflation and a local currency that has lost half its value since it was floated in November.

Avatar photo
Written By

“Montage Africa” is built to be a truly inspirational lifestyle magazine.


On Monday, March 6th 2023, BUILD Nigeria, a registered youth-led nonprofit providing low-income Nigerian students with opportunities to study at world-class universities, announced that all...


Gabonese President Ali Bongo Ondimba hosted his French counterpart Emmanuel Macron in Libreville with several Central African heads of state at a summit on...


Nigerian track and field star Tobi Amusan has been nominated for the 2023 Laureus World Sports Award. Amusan was shortlisted alongside five others in the Breakthrough of the...


Fighting reportedly flared on Monday (Feb. 19) between DR Congo’s army and M23 rebels. Speaking on condition of anonymity, a security source said clashes...


“Blood Sisters” and Nollywood star, Genoveva Umeh joins Taymesan on this episode of his podcast show, “Tea With Tay.” Genoveva talks about growing up in Enugu, moving to...

Tech News

By Upuli De Abrew What is needed is for the data strategy to align with business strategy, and for it to be able to...


More than 600,000 people in Mozambique could be affected by Cyclone Freddy, which is expected to make landfall in the coastal provinces this week,...


By Anne Githuku-Shongwe and Eva Kiwango Anne Githuku-Shongwe is the UNAIDS Regional Support Team for Eastern and Southern Africa Director and Eva Kiwango is the Country Director...


The monumental failure of Silicon Valley Bank and Signature Bank earlier this month have raised concerns of system-wide contagion that could spread to other...


By Rob LaFranco, FORBES STAFF Additional editing by Chase Peterson- Withon and reporting by John Hyatt, Jemima McEvoy, Segun Olakoyenikan, David de Jong and...


Building wealth is not gender-specific and Stripped is Solape Akinpelu’s ingenious attempt at introducing new perspectives to building generational wealth, especially as a woman. While aspiring to...


The recent restlessness in Warri and its environs over the past weeks have been tough, testing our resilience as a people. These same expressions...