Your petrol bill is going up: The Madouly government hiked fuel prices by 9-14% on Friday, according to decisions published in the Official Gazette. Prices at the pumps now stand at:

  • 95-Octane is EGP 12.50 per liter, up 9% from EGP 11.50;
  • 92-Octane is EGP 11.50 per liter, up 12% from EGP 10.25;
  • 80-Octane is EGP 10.00 per liter, up 14% from EGP 8.75.

The price of compressed natural gas for automobiles has risen 22% to EGP 5.5 per cubic meter, up from EGP 4.50 previously.

Don’t expect much of an impact on the price of food and other goods — or public transport. The fuel pricing committee left the price of diesel unchanged, the Oil Ministry said.

This is the second time this year the government has raised fuel prices: Gasoline prices rose 16-25% in March.

The rationale: Disruptions in the energy market from the wars in Gaza and Ukraine have had a “direct and indirect impact on global oil prices, sending Brent crude over USD 90 per barrel over the last few months,” the ministry said. Crude prices have also been pushed upwards by tightening global supply from OPEC+ production cuts and rising demand in Asia.

The hike comes as we look to reduce our import bill from refined oil products: TheEgyptian General Petroleum Corporation reportedly plans to increase the country’s crude imports by 40% starting in FY 2024-2025. By bringing monthly crude imports to 7 mn barrels from 5 mn currently, the government hopes to start refining more petroleum products locally to reduce our import bill from refined oil products.

Remember: The Finance Ministry increased fuel subsidies by 24% to EGP 35.9 bn for FY2023-24 as it penciled in oil prices of USD 85 per barrel for the fiscal year, up from USD 80 per barrel this fiscal year.

El SISE TELLS GOV’T TO CUT CONSUMPTION

“Cut your fuel consumption by half,” El Sisi tells gov’t: President Abdel Fattah El Sisi directed the government to reduce its consumption of fuel by 50%, according to local media (watch: runtime, 0:25). A government source told Enterprise that the new hikes will raise the government fuel bill to EGP 6.6 bn, up from EGP 6 bn.

More gov’t expenses cuts on their way: El Sisi’s directive coincides with the cabinet giving their approval to a series of initiatives to reduce government spending. We have the full rundown on the state’s plan to cut its spending in Cabinet Watch, below.

ICYMI- The Madbouly government has purchased hedging contracts in September covering 35% of its estimated oil imports for the current fiscal year that ends in June 2024, locking in crude purchases at around USD 75-80 per barrel, below the USD 85 budget benchmark. The government expects Egypt to import around 100 mn barrels of crude this year.

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