He noted that government subsidies for diesel will continue in part to protect vital sectors, while gasoline, diesel, and butane cylinder prices will be adjusted under a new mechanism designed to balance actual costs with consumer protection.
Prime Minister, Mostafa Madbouly, revealed that gasoline prices are expected to rise in October, potentially marking the final increase if global price trends remain stable.
He noted that government subsidies for diesel will continue in part to protect vital sectors, while gasoline, diesel, and butane cylinder prices will be adjusted under a new mechanism designed to balance actual costs with consumer protection.
Madbouly explained that, following this phase, automatic pricing will be applied both upward and downward based on market conditions.
However, diesel will remain partially subsidized, with the cost offset by pricing other petroleum products slightly above cost, given diesel’s direct impact on operational expenses and inflation.
The Automatic Pricing Committee for Petroleum Products will meet at the end of September to set prices for gasoline, diesel, and butane cylinders for the last quarter of the year, with expectations pointing to an increase of no more than 10%.
Fuel subsidies in the current fiscal year’s budget have been cut to EGP 75 billion, down from EGP 154.5 billion last year.
Madbouly stressed that overcoming the economic crisis is proof Egypt is on the right track, adding, “We will not need a new program with the IMF.”
He emphasized that Egypt will require about five years to ensure sustainable and accelerated economic growth, with the most pressing challenge being the reduction of the trade deficit.
He underlined the government’s ongoing efforts to improve living standards, while noting that patience and time are needed before tangible improvements in quality of life are fully felt.
Meanwhile, Finance Minister Ahmed Kouchouk affirmed that Egypt is in a strong position to pass the fifth and sixth reviews of its IMF program.
Speaking at a roundtable hosted by the American Chamber of Commerce in Cairo, he highlighted Egypt’s solid partnerships with the IMF and other international institutions such as the World Bank.
In the coming days, Egypt will undergo two reviews under its $8 billion IMF program, which are expected to unlock approximately $2.5 billion in disbursements.
