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Friday, 14 May 2021

Egypt holds domestic fuel prices steady

Reuters , Thursday 2 Jan 2020

Egypt left domestic fuel prices unchanged on Thursday under an IMF-backed pricing mechanism that links energy prices to international markets, the petroleum ministry said in a statement.

In its inaugural meeting in October, the pricing mechanism committee cut fuel prices marginally after the government increased them steeply over the previous three years to cover the cost of fuel on international markets.

The price of 95-octane fuel was kept at 8.75 Egyptian pounds ($0.5472) a litre, 92-octane fuel at 7.75 pounds a litre and 80-octane fuel at 6.50 pounds a litre. The price of oil for industrial use was held steady at 4,250 Egyptian pounds a tonne.

“This is in light of... the rise in the price of Brent crude in international markets from October to December,” the oil ministry statement said.

The committee’s quarterly meeting decisions take into account international energy prices, the Egyptian pound’s exchange rate against the dollar and other factors.

Egypt’s currency has strengthened to 15.99 against the dollar, from 16.31, over the past three months.

The fuel price increases were part of a $12 billion three-year extended fund facility from the IMF signed on 11 November 2016. Egypt also allowed its currency to weaken sharply and implemented a value-added tax to reduce its balance of payments and budget deficits.

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