Egypt Hikes Fuel Prices Ahead of IMF Loan Review

Egypt has increased fuel prices by up to 15% ahead of an IMF review for its expanded $8 billion loan program. The price hike is part of Egypt’s commitment to reduce fuel subsidies. The IMF’s next review is set for July 29 and $820 million is expected to be disbursed post-review.

Egypt raised the prices of a wide range of fuel products on Thursday, the official gazette reported, just four days before the International Monetary Fund (IMF) conducts a third review of its expanded $8 billion loan program for the country.

The official gazette, citing the petroleum ministry, stated that petrol prices surged by up to 15% per litre, with 80 octane rising to 12.25 Egyptian pounds ($0.25), 92 octane to 13.75 pounds, and 95 octane to 15 pounds. Diesel, one of the most commonly used fuels, saw the steepest increase, surging to 11.50 Egyptian pounds ($0.24) from 10 pounds.

This marks the second time the government has upped fuel prices since the IMF expanded its loan program by $3 billion in March. Egypt has committed to reducing fuel subsidies as part of the agreement. Prime Minister Mostafa Madbouly announced on Wednesday that petroleum product prices would gradually rise until the end of 2025, noting that the government could no longer sustain the ongoing increase in consumption.

In April, the IMF projected that Egypt would spend 331 billion Egyptian pounds ($6.85 billion) on fuel subsidies in 2024/25 and 245 billion ($5.07 billion) in 2025/26. The approval for the third review of the expanded loan program, initially expected on July 10, was delayed until July 29, with the IMF attributing the postponement to the finalization of certain policy details. An IMF spokesperson declined to comment on those specifics.

Following the review, the IMF is expected to release $820 million to Egypt. ($1 = 48.2900 Egyptian pounds)

(With inputs from agencies.)