Gasoline prices in Egypt recorded their largest increase in terms of value since the liberalization of the fuel price more than 3 years ago.
The new increase announced by the Petroleum Products Pricing Committee ranged between EGP 0.75 and EGP 1 for various types of gasoline, with the largest percentage being 92-gasoline, the most widely used in Egypt.
* The dollar is equivalent to 30.6 pounds
The decision to announce gasoline prices in Egypt was delayed by about two months. It was scheduled to be issued at the beginning of this year (2023) to be implemented during the first quarter, according to the work mechanisms of the Fuel Price Determination Committee.
Fuel prices in Egypt had witnessed stability, during the last quarter of last year, after the decision of the Committee for Determining the Prices of Oil Derivatives, last October, to stabilize prices, after it recorded a significant increase, during the third quarter of 2022, ranging between 0.5 and 1. fairy.
Fuel prices in Egypt
The Automatic Pricing of Petroleum Products Committee said, in its statement, which was seen by the specialized energy platform, that in light of the fluctuation of Brent crude prices and the exchange rate of the pound against the dollar, the committee decided to adjust the current prices prevailing in the local market.
And she indicated that the date for applying the new increase in gasoline prices in Egypt begins at 2 am local time (12:00 midnight GMT) on Thursday, March 2 (2023).
The fuel prices in Egypt, after the increase, were as follows:
- Raising the price of a liter of 80 petrol to 8.75 pounds instead of 8 pounds.
- Raising the price of a liter of 92 petrol to 10.25 pounds instead of 9.25 pounds, which is the largest increase in its history; Previously, the increase was between 0.25 and 0.5 pounds only.
- The price of a liter of 95 petrol was raised to 11.25 pounds instead of 10.75 pounds.
- Fixing the price of a liter of diesel (diesel) and kerosene at 7.25 pounds.
- Raising the price of a ton of diesel, other than electricity and bakery uses, to 6 thousand pounds instead of 5 thousand pounds.
- Raising the price of gas supplying cars to 4.50 pounds/cubic meter instead of 3.75 pounds.
fuel pricing mechanism
Gasoline prices in Egypt are determined by the petroleum pricing committee formed by a decision of Prime Minister Mostafa Madbouly, which holds a meeting every 3 months to approve new prices, based on a number of criteria. One of the most important is world oil prices.
And Egypt had decided, starting in July 2019, with the liberalization of gasoline and diesel prices – to work with a quarterly pricing mechanism – every 3 months – through a committee formed by a decision of the Prime Minister, whose membership includes representatives from the Ministries of Petroleum and Finance, It is obligated, when making any decision about fuel prices, not to be more or less than 10%.
The new increase in gasoline prices in Egypt is the seventh since the decision to liberalize the price of fuel in the country, according to the monitoring of the specialized energy platform.
The decision to form the committee – for which it was scheduled to meet periodically every 3 months to consider the prices of gasoline in Egypt and other oil derivatives – stipulated that the prices of all kinds of petroleum products should be adjusted according to a price equation that takes into account 3 main components; International oil prices from Brent crude, the exchange rate of the dollar against the Egyptian pound, and the calculation of the value of transportation, refining and other burdens.
Despite the increase; Gasoline prices in Egypt are still among the cheapest in the Arab world. As the new price rate of 10.25 pounds ($0.33) per liter of 92 petrol is the most traded.
The following infographic prepared by the energy platform shows the cheapest gasoline prices in the Arab countries:
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