Egypt to raise fuel prices for first time this year as condition of IMF loan deal

Egypt's Ministry of Petroleum announced that the government had raised fuel prices starting on Friday, marking the first increase of 2025.

The move comes as part of efforts to reduce fuel subsidies in line with an $8 billion support package from the International Monetary Fund (IMF).

The price hikes, which ranged from between 11.76% to 14.81%, apply to a wide array of fuel products. They come nearly a month after the IMF approved the disbursement of $1.2 billion to Egypt following the completion of the fourth review of the loan programme agreed upon by both sides last year.

In a statement, the ministry said that the price of diesel — one of the most widely used fuels in the country — was increased by 2 Egyptian pounds (approximately $0.04) to 15.50 pounds per litre ($0.30), up from 13.50 pounds. 

Petrol prices were also raised at varying rates, reaching up to 14.5%. The price of 80-octane petrol rose to 15.75 pounds per litre, 92-octane to 17.25 pounds, and 95-octane to 19 pounds.

The price of household cooking gas was increased to 200 pounds per cylinder, up from 150 pounds.

The ministry added that the price of industrial-grade fuel oil was raised to 10,500 pounds per ton, bulk gas to 16,000 pounds per ton, and gas supplied to brick factories to 210 pounds per million BTUs. However, the government decided to keep prices fixed for fuel oil used in electricity generation, the food industry, and for automotive gas.

"Despite the recent price increases in petroleum products, a price gap still exists between cost and retail prices, due to the significant rise in costs which these increases have not yet absorbed," the ministry stated. 

"Out of concern for the social dimension and easing the burden on citizens, the state directs the bulk of its subsidies to diesel, butane, and 80- and 92-octane petrol to lessen the strain on the public.” It also clarified that "the current prices will not be reviewed again for at least the next six months".

Egypt has received successive financing facilities from the IMF since 2016, when it agreed to a $12 billion loan program to revive its economy. Since then, the IMF has urged the government to cut subsidies on fuel, electricity, and food while expanding social safety nets.

In March, the IMF said the Egyptian government is committed to reducing energy subsidies to achieve full cost recovery by December, as part of its efforts to reduce a large current account deficit.

The effect of rises in the price of fuel combined with energy and food subsidy cuts threatens to put millions of already struggling Egyptians under even more economic pressure, with one-third of the country designated as "poor".