Egypt has increased fuel prices for the third time this year while reducing subsidies for diesel and gasoline.
Diesel and gasoline prices will increase by between 11% and 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 liter 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 subsidized bread by 300% in June, although bread remains heavily subsidized after the increase.
The government, facing a politically sensitive decision that affects two-thirds of Egypt’s 106 million people who rely on subsidized bread, had postponed the move for years. On Friday, the fuel pricing committee, which usually meets quarterly, announced it will hold its next meeting in six months.
