Egypt raises gasoline, diesel prices for third time this year

Egypt raised fuel product prices on Friday for the third time this year as it continues to cut back on diesel and gasoline subsidies, but said it would cover the additional energy costs for bakers of subsidised bread.

Diesel and gasoline prices will increase by between 11% to 17% effective immediately, the government said.

"The state will continue to bear the difference in production costs and pay them to bakery owners through the General Authority for Supply Commodities," Supply Minister Sherif Farouk said in a statement.

Diesel, one of the most commonly used fuels in the country, saw the biggest increase, to 13.50 Egyptian pounds ($0.2779) per litre from 11.50 pounds.

Gasoline prices increased from 11% to 13% depending on the grade, with 80 octane gasoline rising to 13.75 Egyptian pounds, 92 octane to 15.25 pounds, and 95 octane to 17 pounds.

Prime Minister Mostafa Madbouly said in July that prices of petroleum products will gradually increase until the end of 2025, adding that the government could no longer bear the burden of paying subsidies on fuels amid increasing consumption.

Egypt, for the first time in decades, raised the price of subsidised bread by 300% in June, although bread remains heavily subsidised after the increase.

The politically sensitive decision, with two-thirds of Egypt's 106 million population benefiting from the subsidised bread programme, had been delayed for years.

The government's fuel pricing committee, which typically convenes each quarter, said on Friday its next meeting will be held in six months. 

(Reuters)