File Photo: A worker holds up a fuel pump nozzle after filling up the tank of a car at a petrol station in Cairo. AFP
2016 marks the Egyptian government's renewed engagement with the International Monetary Fund (IMF).
The adjustments are part of a broader economic reform agenda introduced after the flotation of the Egyptian pound. The flotation was implemented alongside a financial support programme from the IMF aimed at reducing the country’s subsidy bill and aligning domestic fuel prices more closely with global energy markets.
Since 2016, Egypt has secured two Extended Fund Facility (EFF) programmes with total loans of $20 billion. Both programmes aim to address the imbalances of the Egyptian economy caused by severe crises.
Prices multiply several times
Before the reform wave began in 2016, gasoline and diesel prices were heavily subsidized. Since then, successive price adjustments have pushed retail prices to multiple times their earlier levels.
** 80-octane gasoline: from about EGP 1.6 per litre in 2016 to around EGP 20.75 in 2026
** 92-octane gasoline: from roughly EGP 2.35 to about EGP 22.25 per litre
** 95-octane gasoline: from around EGP 2.6 to about EGP 24 per litre
** Diesel: from roughly EGP 1.8 to about EGP 20.5 per litre
Overall, the increases translate into a roughly eight- to twelve-fold rise in retail fuel prices over the past decade.
Gradual but steady adjustments
The government implemented the increases through a series of major price hikes between 2016 and 2019, followed by periodic adjustments under an automatic pricing mechanism introduced to link local fuel prices to international oil markets and exchange rate movements.
Since the mechanism’s introduction, fuel prices have been reviewed periodically by the Fuel Automatic Pricing Committee, with several increases recorded between 2021 and 2025.
Fiscal reform objective
Reducing fuel subsidies has been a key pillar of Egypt’s fiscal consolidation strategy, under the IMF’s EFF loan programme, as the government seeks to contain the budget deficit and redirect public spending toward social protection and infrastructure investment.
Officials have repeatedly stated that the goal is to gradually achieve cost-recovery pricing for retail fuel products while maintaining targeted support for vulnerable groups.
Despite the increases, the government continues to absorb part of the global price volatility, particularly for diesel, which remains a critical input for transportation and food supply chains.
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