PM monitors implementation of new transport fares in Egypt after fuel hike

Egypt’ Prime Minister Moustafa Madbouly arrived on Friday at the operations room formed at the Cabinet’s Information and Decision Support Center (IDSC) to follow up the implementation of new transport fares in governorates after the new shifting in the prices of petroleum products earlier on the day.

Egypt increased fuel prices early Friday in its latest round of subsidy cuts under a reform package agreed with the International Monetary Fund.

Gasoline and Diesel fuel prices increased by 1.25 pounds per litre. In a statement issued by the Ministry of Petroleum, the 95 octane gasoline cost hiked to 9 pounds from 7.75 pounds per litre.

The 92 octane gasoline saw an increase from 6.75 pounds per to 8 pounds per litre, whereas the gasoline 80 cost increased to 6.75 pounds from 5.5 pounds per litre.

Diesel fuel price increased from 5.5 pounds to 6.75 pounds per litre, while a meter of natural gas for vehicles increased to 3.5 pounds from 2.75 pounds.

The latest cut in fuel subsidies is a condition of a $12-billion loan secured from the IMF in November 2016. It is the fifth and final hike in petrol prices as Egypt prepares to receive the last $2-billion tranche from the monetary body.

A source earlier said that Cairo Governor Khaled Abdel-Aal is currently holding a meeting with local officials to discuss the implementation of the decision to increase the prices of petroleum products and mechanisms of monitoring transportation fares within the governorate.

In 2014, Egypt embarked on a plan to introduce a number of fiscal reforms, including fuel subsidy cuts that increased prices up to 78 percent, as well as imposing new taxes to ease a growing budget deficit.

Source: Ahram Online