Egypt has raised gasoline prices in its latest quarterly review as the country continues its economic reform program. The price increase is will help the government reduce its budget deficit. It will also tackle its mounting debt.
The price of 92-octane gasoline increased from 7.5 Egyptian pounds ($0.48) per liter to 8 pounds ($0.51) per liter, while the price of 80-octane gasoline increased from 6.5 Egyptian pounds ($0.41) per liter to 6.75 pounds ($0.43) per liter.
This is the second time Egypt has raised fuel prices this year, with the previous increase taking place in April. The government has also reduced fuel subsidies as part of its economic reform program, which began in 2016.
The reform program has been supported by a $12 billion loan from the International Monetary Fund (IMF). It aims to boost economic growth, reduce the budget deficit. While also addressing the country’s structural challenges.
REACTION
However, the price increase has sparked anger among some Egyptians who are already struggling to make ends meet due to rising inflation and the impact of the COVID-19 pandemic.
Many Egyptians rely on cars and public transportation to get around, and the increase in fuel prices is likely to have a knock-on effect on the cost of living.
However, the Egyptian government has defended the decision. It says that it is necessary to reduce the budget deficit and maintain economic stability.
“We are aware that this will increase the burden on citizens. However, it is a necessary step for the sake of the country’s economic stability,” said Egyptian Finance Minister Mohamed Maait.
Despite the price increase, fuel prices in Egypt are still relatively low compared to many other countries. For example, in neighboring Jordan, the price of gasoline is around $0.85 per liter.
The government has also announced that it will continue to provide fuel subsidies for low-income households. Although the details of this support have not yet been revealed.
The price increase is likely to be a controversial issue in the lead-up to Egypt’s presidential elections next year, with some opposition figures already criticizing the government’s economic policies.
However, the government has stated that it remains committed to its economic reform program, which it sees as crucial to the country’s long-term growth and stability.
