Egypt’s massive fuel hike hits hard

EGYPT has raised petrol prices by up to 50 percent, the oil ministry said on Saturday, under an IMF reform plan calling for austerity measures that have made life tougher for ordinary Egyptians.

Oil Minister Tarek El Molla said the price rises would help Egypt save up to E£50 billion (R37.48bn) in allocations for state subsidies in the 2018-19 state budget.

The price hike, the third since Egypt floated its pound currency in November 2016, is expected to pile more pressure on Egyptian consumers struggling to make ends meet amid high unemployment and rising prices.

The oil ministry said the price for 95 octane petrol had been increased to E£7.75 a litre from E£6.60; 92 octane had been raised to E£6.75 a litre from E£5 and 80 octane had gone up to E£5.50 a litre from E£3.65.

The ministry also raised the price for a canister of gas for Egyptian households to E£50 from E£30, while a bottle of gas for commercial purposes was raised to E£100 from E£60.

The government, under new Prime Minister Mustafa Madbouly, also announced on Saturday a hike in taxi fares by 10 to 20 percent. 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 for bakeries to ensure that the price of Egypt’s main staple remains unchanged. – Reuters