Fuel and gas prices in Egypt rose by between 14 and 30 percent effective Tuesday, with the cabinet attributing the move to the escalating regional conflict as the US-Israeli war on Iran enters its eleventh day, driving sharp rises in energy prices and roiling global markets.
The government added that it continues to bear a substantial share of the cost, and that the decision was aimed at ensuring the stability of the local market and the sustainability of fuel supplies during a period of sharply rising petroleum prices and transportation costs.
Under the new pricing, petrol grades rose by EGP 3 per litre, bringing 95-octane to EGP 24, 92-octane to EGP 22.25, and 80-octane to EGP 20.75.
Diesel also climbed by EGP 3, from EGP 17.5 to EGP 20.5 per litre, while natural gas for vehicles jumped from EGP 10 to EGP 13 per cubic metre.
Cooking gas cylinders also increased in price, with households now paying EGP 275 for a 12.5 kg cylinder, up from EGP 225, and EGP 550 for the 25 kg size, up from EGP 450.
The statement stressed that the measures are “Temporary precautionary measures” and part of a phased response to exceptional conditions in global energy markets.
It said it will monitor international developments on a daily basis and stands ready to reverse or adjust the increases should global energy prices improve, with the aim of stabilizing local markets and easing the burden on citizens and the productive sector.
The statement noted that Prime Minister Mostafa Madbouly has issued a decree directing government agencies to rationalize expenditures, cutting travel, conference, and advertising costs, and prioritizing the completion of near-finished projects over new investment.
Additionally, Madbouly noted that energy rationalization measures are also being rolled out across government operations, with governors instructed to conduct daily field inspections of street lighting, billboards, and commercial signage to ensure compliance with consumption rules.
Madbouly also noted that the government will act on President Abdel Fattah El-Sisi's directive to study referring price manipulators to military courts, warning that exploiting the crisis to inflate prices will not be tolerated.
Social protection measures
The statement also revealed that the government announced it is expanding social protection measures to cushion the impact of rising global energy, transportation, and shipping costs on vulnerable Egyptians.
The recently announced cash support for beneficiaries of the Takaful and Karama programs, as well as families holding subsidized ration cards, will be extended for an additional two months under an existing social protection package, the statement noted.
The government also plans to announce an early salary and income improvement package for public sector employees, effective from the 2026/2027 fiscal year.
The package will include raising the minimum wage, which now stands at EGP 7,000, in line with current economic conditions, in what the cabinet described as a commitment to protecting the purchasing power of public sector workers.
Oil prices have topped $100 a barrel for the first time since Russia invaded Ukraine in 2022, as the US-Israeli war on Iran roils energy markets across the region.
The fighting has knocked out roughly one-fifth of global crude and natural gas supplies after Iran moved to effectively shut down tanker traffic through the Strait of Hormuz, a chokepoint through which oil from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, and the UAE all pass.
The conflict has also put the Egyptian pound under fresh pressure.
Last Tuesday, three days after the start of the US-Israeli war on Iran, the dollar broke above EGP 50 for the first time since the outbreak of the Russia-Ukraine war in 2022. By Monday, the exchange rate had closed at EGP 52.72 to the dollar.
Earlier today, Egypt's Supply Minister Sherif Farouk confirmed on Tuesday that the price of subsidized (baladi) bread will remain unchanged at 20 piasters per loaf despite a recent hike in fuel prices.
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