Egypt keeps domestic fuel prices unchanged

Doaa A.Moneim , Thursday 9 Jul 2020

Domestic fuel prices for consumers in the local market will remain the same, according to a decision of the fuel Prices Committee

An employee of a petrol station fills a car tank in Cairo (Photo: Reuters)

Egypt’s automatic fuel pricing committee decided in its quarterly meeting on Wednesday to keep fuel prices unchanged, leaving the price of 95-octane fuel at EGP 8.50 ($0.53) a litre, 92-octane fuel at EGP 7.50 ($0.46) a litre and 80-octane fuel at EGP 6.25 a litre ($0.39), the oil ministry said.

Gas oil prices were kept at EGP 6.75 ($0.42) a litre.

The decision by the pricing committee to keep prices unchanged came after reviewing global Brent crude prices and the currency exchange rates during the April-June period, the ministry said in a statement.

The decision also took into account the "negative repercussions of the coronavirus pandemic on global economic activity and the oil and energy markets," it added.

In April, the committee cut fuel prices by EGP 0.25 for the three types of fuel, while keeping the price of natural gas used for vehicles at EGP 3.5 per cubic metre and gas oil at EGP 6.75 per litre.

The price of fuel oil for industrial use was lowered by EGP 350 to EGP 3,900 per ton.

The decrease in prices at the time came amid the dual effects of the Covid-19 crisis and collapsing global oil prices on the back of an oil price war between Saudi Arabia and Russia that began in March.

Egypt announced in July 2019 it would begin linking energy prices to international markets as part of an IMF-backed pricing mechanism, with the committee reviewing prices every three months.

The new mechanism came into effect in October 2019, when the committee lowered prices of all gasoline types by 25 piasters per litre.

In the same month, the government lifted fuel subsidies entirely, after raising fuel prices five times since 2014.

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