Egypt increased domestic gasoline prices by as much as 14.3% on Friday, although diesel prices remained the same, according to official media.
The price of 80-octane gasoline was hiked by 1.25 Egyptian pounds, 92-octane gasoline by 1.25 pounds, and 95-octane gasoline by 1 pound to 10 Egyptian pounds ($0.3241), 11.50, and 12.50 per liter, respectively, according to the state media, which cited the official gazette.
The price per liter of fuel was maintained at 8.25 pounds. The ruling is effective on Friday at 8 a.m. (0600 GMT).
Since 2019, gasoline prices have been subject to quarterly reviews by prior commitments to the International Monetary Fund (IMF) and have taken into consideration the currency rate and worldwide markets.
The government chose to maintain the same price for diesel to lessen the impact on different industries. Preserving the stability of diesel, a fuel essential to industry and transportation, was a calculated move to avert a generalized economic shock.
Egypt’s gasoline price spike exacerbated the cost of transportation, which drove up the cost of products and services. This inflationary pressure had an impact on the cost of living for locals, especially for those with low incomes, which caused financial difficulties.
Operating expenses increased due to the price rise for firms, particularly those that depend on transportation and fuel-dependent activities. To stay competitive in the market, many firms had to adjust their pricing plans and budgets.
The 2023 gasoline price spike in Egypt was a noteworthy event with broad ramifications. The reasons for the price hike, the government’s response, and the effects on the economy, people, and companies were all discussed in this article. Comprehending these processes is crucial to grasp the broader economic context of Egypt during this time frame.