The automatic petroleum pricing committee, which is responsible of reviewing and re-estimating prices of fuel in Egypt every quarter, decided to raise the price of fuel, in all categories, for the second time in a row. All categories of fuel were increased by EGP 0.25 for the litre, with gasoline (octane 80) priced at 6.76 EGP/L (3.8 per cent increase), gasoline (octane 92) at 8 EGP/L (3.2 per cent increase), and gasoline (octane 95) at 8.75 EGP/L (2.9 per cent increase). Last April, the committee raised the fuel prices by 0.25 EGP.
The ministry of petroleum attributed the increase to the intensive fluctuations of international prices due to the COVID-19 pandemic. Last month, the Egyptian Minister of Petroleum Tarek Molla stated that the fuel prices will not increase over the new fiscal year. This is the seventh increase of fuel prices over the mandate of Abdel Fattah Al-Sisi, who took office in 2014. Gasoline (octane 80) increased from EGP 0.8 to 6.75 (a 740 per cent increase), gasoline (octane 92) from EGP 1.85 to EGP 8 (a 330 per cent increase). In addition, household gas was increased from EGP 8 to EGP 65 (a 700 per cent increase).
Moreover, Sisi ratified, in June 2020, a governmental law to put a tax on fuel that guaranteed a minimum price for the fuel products even if their prices decreased internationally, violating the free market policy of linking fuel prices in Egypt with international prices.