CAIRO (Reuters) – Egypt raised prices for a wide range of fuel products on Friday, the official newspaper said, continuing to fulfill a pledge made to the International Monetary Fund (IMF) more than a year ago as part of a $3 billion financial program. support agreement.
In a letter of intent signed in November 2022, Egypt said it would allow price increases on most fuel products to bring domestic prices more in line with those on international energy markets.
He also promised to compensate for the slowdown in such growth compared to the previous year. But subsequently prices were increased only once, in March 2023.
The agreement with the IMF was suspended last year after Egypt failed to meet price increases and other commitments, including allowing its currency to move according to market forces, quickly selling state-owned assets and reducing the government’s role in the economy.
This month the IMF extended a financial support agreement to $8 billion to help Egypt overcome the turmoil in its economy caused by the Gaza war and after the government renewed its commitment to reform measures including a sharp currency devaluation.
The IMF’s board of directors has not yet met to approve the new agreement.
The official newspaper, citing the Oil Ministry, said the quarterly pricing committee raised gasoline prices on Friday by EGP 1.00 ($0.02) per liter, with 80 octane up to £11.00 and 92 octane at £11.00. to £12.50 and 95 octane to £13.50.
The IMF argues that subsidized gasoline prices largely benefit the rich at the expense of the poor, most of whom do not own vehicles.
The pricing committee raised the price of diesel to £10 from £8.25 and the price of cooking butane to £100 a cylinder from £75, the newspaper, which covers government decisions and announcements, reported.
The committee also set the price of fuel oil at £7,500 per tonne, but kept prices unchanged at £1,500 per tonne for food processing and £2,500 per tonne for power plants.
Inflation hit a record high in 2023, with prices rising 33.7%.
($1 = 46.6000 Egyptian pounds)