File Photo: A worker holds up a fuel pump nozzle after filling up the tank of a car at a petrol station in Cairo. Photo: AFP
According to the sources, the anticipated move is key to attaining the break-even point regarding the retail fuel product rates in the local market.
The sources explained that the prices of diesel, octane 95, and gas cylinders are the most challenging among other fuel products for the fuel subsidies system.
They clarified that the government spends EGP 200 million daily on gas cylinder subsidies and allocates EGP 750 million daily for diesel subsidies.
Moreover, they noted that the Fuel Automatic Pricing Committee (FAPC) set the actual cost of octane 95 at EGP 35 per litre. However, its price now stands at EGP 17 per litre. Thus, the increase is anticipated to exceed 100 percent by the end of the year.
They added that the actual price of a gas cylinder is EGP 400, but it is now EGP 150.
The FAPC also set the actual diesel price at EGP 15-20 per litre, compared to the current price of EGP 13.5, indicating that the increase could reach 48 percent.
Since implementing the first wave of economic and structural reforms supported by an IMF loan programme in 2016-2019, the government has adopted a fuel price indexation mechanism within the FAPC.
The committee is scheduled to convene quarterly to review retail fuel products in the local market in light of global oil prices and local economic developments.
Therefore, FABC is expected to hold three meetings until the end of 2025.
Since 2014, Egypt has raised the prices of retail fuel products over twenty times, including three times in 2024.
Furthermore, the sources said octane 80's actual cost is EGP 16 per litre, compared to the current price of EGP 13.75. This indicates a potential increase of around 16.5 percent.
They also stated that octane 92's actual cost is EGP 18 per litre versus the current price of EGP 15.25, which means an anticipated increase of up to 18 percent.
In October, Prime Minister Mostafa Madbouly said the government should adjust fuel prices until the end of 2025. The government is also trying to minimize the burden on citizens while bearing the brunt of the impact and will continue supporting low- and middle-income households.
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