Fuel prices in Egypt were hiked on Saturday, the second day of the Eid Al-Fitr holiday, as Egypt continues to phase out energy subsidies in order to curb the growing state budget deficit.

The petroleum ministry announced in a statement on Saturday that new fuel prices will be implemented as follows:

Saturday's fuel price increases were widely anticipated as part of Egypt’s loan agreement with the International Monetary Fund, and represent a third rise since the government floated the Egyptian pound in November 2016.

Petroleum Minister Tarek El-Molla said price hike will help Egypt to save up to EGP 50 billion from funds allocated for state subsidies in the 2018-19 budget.

Increases also affect the price of cooking gas cylinders, used mostly by lower income Egyptians, which increased by 66 percent, from EGP 30 to EGP 50 per cylinder. This leaves a subsidy of 71 percent still in place for domestic consumption, representing EGP 125 per cylinder after Saturday's increase.

Cooking gas cylinders for commercial use increased by 50 percent, from EGP 50 to EGP 100 per cylinder. A subsidy of 33 percent remains in place after the increase, representing EGP 49.4 EGP per cylinder sold.

Petroleum Minister Tarek El-Molla has said that the total subsidies for petroleum products in the current fiscal year 2017-18 are set to fall from EGP 145 billion to EGP 110 billion.

Prime Minister Mostafa Madbouly said that bread prices would not be affected by a 50.7 percent rise in diesel prices. He said the Ministry of Supply would bear the extra cost to ensure that the price of Egypt’s main staple remains unchanged.