Egypt's newly appointed Prime Minister Mostafa Madbouly has introduced on Saturday a new tariff for public transport services, at an increase between 10 and 20 percent following a hike in fuel prices, according to a statement by the cabinet.
The new fuel subsidy cuts have introduced a 52.7 percent increase on 80 Octane gasoline, 35 percent on 92 Octane gasoline and 19 percent on 95 Octane gasoline.
Khaled Mostafa, the spokesman for the governor of Cairo, told Ahram Online on Saturday that "penalties will be imposed on drivers who do not abide by the new tariffs and anyone who violates the newly introduced decisions."
According to a statement by Cairo governorate, new fares for minibuses are as follow:
- Minibus: EGP 4, up from EGP 3
- Minibus with WiFi: EGP 4.25, up from EGP 3.5
- Minibus in new cities: EGP 5, up from EGP 4.5
- Air conditioned minibus with Wifi: EGP 8, up from EGP 7
Cairo governorate has also issued the new tariffs for taxi cabs, with the metres to start at EGP 6 instead of EGP 5 for a one-kilometre journey, with each subsequent kilometre priced at EGP 2.50.
Saturday's fuel price increases were widely anticipated as part of Egypt’s loan agreement with the International Monetary Fund, and are the third fuel subsidy cut since the government floated the Egyptian pound in November 2016.
The government has embarked on an ambitious economic reform programme as part of a three-year agreement with the IMF. The programme includes lifting subsidies, raising taxes and loosening capital controls.
Fuel subsidy cuts were part of the economic reform package adopted in July 2014 that aimed to ease the country's growing budget deficit.
This is not the first time in the last few years that the country’s public transportation fares have increased immediately following fuel price hikes.
In June 2017, Egypt imposed energy subsidy cuts, increasing fares for buses, taxis, and private ride-hailing services Uber and Careem.
In May, ticket fares for Cairo's underground metro were increased based on a new zone system.