The date of the gasoline increase is approaching in Egypt, as the Gasoline and Petroleum Derivatives Pricing Committee is scheduled to hold its meeting within a few days, to announce the new prices, which many are waiting for.
Sources said, in exclusive statements to the energy platform, that there is a current dispute regarding the new prices of all kinds of gasoline, diesel and gas in Egypt, which has postponed the meeting of the pricing committee until now, but it is expected to announce it at the end of this week, that is, Thursday, January 12. (2023).
According to the sources, the Gasoline Pricing Committee tends to fix prices, especially with the stability of oil prices at $85 per barrel, and sometimes less than these rates to $75, while the Presidency of the Republic tends to add a new price increase, due to the devaluation of the pound against the US dollar. Recently.
The sources indicated that the Presidency of the Republic is trying to meet the requirements of the International Monetary Fund, by completely lifting subsidies on all kinds of oil derivatives, suggesting that the date of the increase in gasoline in Egypt will carry a surprise, which is raising the price of gasoline by half a pound (0.018 US dollars), and fixing diesel and domestic gas.
Gasoline pricing committee
In the event that the date for the gasoline increase in Egypt is officially set, and the increase is announced, which was suggested by “energy” sources, the Gasoline Pricing Committee will have maintained specific levels of prices, especially with the country facing a strong economic crisis.
It is noteworthy that the Committee for Automatic Pricing of Petroleum Products had announced on October 22, 2022, the stabilization of gasoline prices of all kinds in the local market, for the period from the first of last October until the end of December 2022.
With the expiry of the prices announced during the last gasoline pricing committee meeting, citizens are waiting for the date of the increase in gasoline in Egypt, which coincides with the stability of global oil prices around $85 a barrel, lower than the levels of the second quarter of last year, which witnessed a rise of $139 a barrel.
Gasoline prices in Egypt
The sources expected that the date for the gasoline increase in Egypt would be Thursday, January 12, during which the Gasoline Pricing Committee is likely to announce the new increase, which is estimated at 50 piasters per liter of gasoline of all kinds.
It is expected that the new gasoline prices in Egypt will be as follows:
- Increasing the price of a liter of 80 petrol from 8 pounds to 8.50 pounds.
- Increasing the price of a liter of 92 petrol from 9.25 pounds to 9.75 pounds.
- Increasing the price of a liter of 95 petrol from 10.75 pounds to 11.25 pounds.
- Fixing the price of a liter of diesel (diesel) and kerosene at 7.25 pounds.
- Fixing the price of a ton of diesel supplied to the rest of the industries at EGP 5,000.
(US dollar = 27.60 Egyptian pounds)
Gasoline pricing mechanism
The Petroleum Derivatives Pricing Committee determines the date for the gasoline increase in Egypt on a quarterly basis, in a meeting it holds during the first week of every month following the end of the previous specified period, and during the new meeting, prices for the next 3 months are determined.
The Gasoline Pricing Committee – established by a decision of the Prime Minister, Dr. Mustafa Madbouly – includes in its membership both the Prime Minister and representatives from the Ministries of Petroleum and Finance, according to the information seen by the specialized energy platform.
The committee, according to its formation decision, is obligated not to raise or lower the prices of oil derivatives by more or less than 10%, and its decision is based on a price equation that takes into account 3 factors before making the decision, namely the exchange rate of the US dollar against the pound, international oil prices, and the value of transport and refining expenses. and other costs.
Leave a Reply