Cairo Metro Fares Soar Amid Fuel Price Hikes
Cairo commuters experienced a significant rise in metro ticket prices following a 30% increase by Egypt's National Authority for Tunnels, driven by recent fuel price hikes. The Egyptian government attributes the fare adjustment to heavy losses in the transport system, increased operational costs, and ambitious infrastructure projects.
Commuters in Cairo faced substantial increases in metro ticket prices on Thursday, with the public transport operator raising fares by up to 30% following a recent surge in fuel costs. The National Authority for Tunnels adjusted ticket prices to 8 Egyptian pounds ($0.16) for short trips and 15 pounds for longer routes, according to local reports.
This fare hike follows a 15% increase in fuel prices last week, the second such rise since the International Monetary Fund (IMF) expanded Egypt's loan program by $5 billion in March. As part of the IMF agreement, Egypt pledged to rationalize spending, including by reducing fuel subsidies.
The Egyptian government justifies the fare increases by citing significant losses and rising operational expenses in the metro system. Additionally, the budget for fiscal year 2024/25 shows heavy reliance on local and external borrowing, totaling over 176 billion Egyptian pounds, to fund major transportation projects, including the world's longest monorail line. The IMF announced on Monday that Egypt could withdraw $820 million following the completion of a program review, urging further progress in managing public investment and state-owned enterprises.
($1 = 48.6200 Egyptian pounds)
(With inputs from agencies.)