Cairo on 16 June hiked retail prices for gasoline, diesel and LPG with immediate effect.The painful measures follow the previous week’s announcement of 20-30% hikes to power prices (MEES, 15 June). Egypt has pledged to phase out energy subsidies as part of a $12bn loan deal with the IMF agreed in November 2016.
As with electricity tariff increases, this is the third time Egypt has hiked fuel prices since it signed the deal with the IMF. In local currency terms cumulative increases have been more than threefold for diesel and the lowest quality (cheapest) 80 Ron grade of gasoline, and fourfold for LPG. But the halving in value of the Egyptian currency with its flotation in late 2016 mean that the price hikes are much less, though still substantial, in dollar terms: 39% for diesel, and 34% for 92 Ron gasoline, which after the price hikes to 80 Ron product is now the most commonly used grade (see table). (CONTINUED - 786 WORDS)
