File Photo: An Egyptian worker waits for a customer at a petrol station in Cairo. AFP
Madbouly said the government will resume the work of Egypt's automatic fuel pricing committee in the first quarter of the current fiscal year, ending a temporary suspension of the quarterly review mechanism.
Speaking at a press conference following the cabinet’s weekly meeting, Madbouly said the committee would assess fuel prices every three months and decide whether prices should be reduced, maintained, or increased in line with technical and economic indicators.
"The automatic pricing mechanism will return every three months. It will examine the technical factors and decide whether to lower prices, keep them unchanged or adjust them according to prevailing conditions," he said.
Responding to questions about falling global oil prices, Madbouly said the government remained committed to its earlier pledge to review domestic fuel prices once market conditions stabilized.
He explained that while the average oil price assumed in last year's state budget was $75 per barrel, the actual average stood at around $62 per barrel. Before the outbreak of the US-Israeli war on Iran on 28 February, crude oil traded at about $69 per barrel, but climbed to $93 per barrel following the latest fuel price adjustment in Egypt, an increase of roughly 50 percent.
Madbouly stated that oil prices later surged to $125 per barrel in April, while the Egyptian pound weakened to around EGP 55 per US dollar.
Despite the sharp rise in global energy prices and exchange rate pressures, the government refrained from introducing additional fuel price increases, Madbouly added, citing concerns over the financial burden on citizens.
"We did not take any further pricing measures because we were mindful of the burden on citizens," he said.
Madbouly added that fuel demand typically rises during the summer months, requiring additional financial support for the Egyptian General Petroleum Corporation to help absorb higher supply costs and ensure stable energy supplies.
"We are keen to ensure that citizens do not bear additional burdens," the prime minister said.
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