Egypt implements second fuel price hike in 2025 to curb subsidies, budget deficit

Egypt has raised the prices of a wide range of petroleum products, as reported by the country's official newspaper. This marks the second increase this year as part of the government's efforts to cut subsidies and reduce budget deficits.

The latest price hikes, which range between 10.5% and 12.9%, follow an almost 15% surge in April. The Egyptian Ministry of Petroleum announced that the government will freeze domestic fuel prices for at least a year after this latest increase, citing various local, regional, and global developments.

The ministry also stated that the oil sector will continue to operate its refineries at full capacity, settle debts with its partners, and provide incentives to boost production while cutting import costs.

Specifically, diesel prices, among the most commonly used fuels in the country, have increased by 2 Egyptian pounds, bringing the price to 17.50 pounds per liter, up from 15.50.

Egypt remains committed to reducing energy subsidies and aligning domestic prices with real costs by December, as it works to address a significant current account deficit, as highlighted by the International Monetary Fund back in March. The government has confirmed it will maintain diesel subsidies, even if it means raising the prices of other fuels above cost to finance these subsidies.

The IMF has urged the government to reduce subsidies on fuel, electricity, and food while expanding social safety nets as part of an $8 billion loan agreement.

In the second quarter, Egypt's current account deficit stood at $2.2 billion, with petroleum product imports reaching $500 million, up from $400 million the previous year, according to the central bank's data.

Gasoline prices have also seen an increase of up to 12.7%, with 80 octane gas priced at 17.75 pounds per liter, 92 octane at 19.25 pounds, and 95 octane at 21 pounds.