Egypt hikes fuel prices to curb global inflation pressures

Egypt hiked fuel prices by about three percent as global inflationary pressures spike in the wake of Russia’s war inUkraine.
The raise came into effect on the morning of Friday, April 15. The cabinet’s Facebook page announced the new prices as 9.75 Egyptian pounds ($0.53) per litre for the 95 octane gasoline instead of from 9.5 pounds.

In the meantime, the cost of 92 octanes has increased from 8.5 to 8.75, while the cost of 80 octanes rose to 7.5 to 7.25.

The main fuel diesel’s prices, which is used to transport goods and commuters, were however unchanged.
Fuel prices climbed to 12 percent in February from 10 percent in March, which are expected to reflect inflation rates, according to the state-run statistics bureau.

Last month, for the first time since 2017 Egypt’s central bank raised its key interest rate to contain soaring inflation. The move saw the Egyptian pound depreciation, trading at over 18 to the dollar jumping up from an average of 15.6 for $1. The global economy has been negatively affected due to the war in Ukraine. Consequently, not just food supplies and livelihoods have been in danger.

Brent crude oil reach a peak of $140 per barrel, Last month, before recently dropped to nearly $112. Egypt witnessed capital outflows, like other markets, in the aftermath of the war, that reduced the country’s net foreign reserves to $37.082 billion by the end of March, down from $40.99 billion in February. The Egyptian economy, Saudi Arabia, Qatar and the United Arab Emirates, obligated a total of $22 billion in the form of deposits and direct investments, it considers as one of trials to stabilize.