Following the recent fuel price increase announced by the Egyptian Cabinet on Thursday, Careem confirms that it will not be possible for both the company and the “Captains” (drivers) to bear this increase. Correspondingly, the company is studying a new fare scheme with specified increase percentages and will announce the new prices at the suitable time. Ramy Kato, head of Careem Egypt operations and vice president of Careem Care, said that Careem aims to provide a proper income for its Captains, while maintaining relatively affordable fares for its customers.
The government decided to increase the price of fuel, starting at 8 am on Thursday, where the price of a litre of gasoline 92 rose to EGP 5, up from EGP 3.5. The price of gasoline 80 and diesel fuel both increased from EGP 2.35 to EGP 3.65. And the price of the cubic metre of gas for cars was lifted from EGP 1.6 to EGP 2, according to Minister of Petroleum Tarek El Molla.
Moreover, the price of gasoline 95 increased from EGP 6.25 to EGP 6.6, while the liquefied natural gas (LNG) cylinders increased to EGP 30, up from EGP 15.
The Egyptian General Petroleum Corporation (EGPC) has estimated the fuel subsides in the coming fiscal year would cost EGP 145bn without rationalisation, but the Ministry of Finance listed the bill for the same item in the 2017/2018 budget at EGP 110.148bn.
This is the second increase in fuel prices in less than a year, where the government raised fuel prices in November. The price of gasoline 80 was increased by 45% from EGP 1.6 to EGP 2.35; while the price of gasoline 92 was increased from EGP 2.6 to EGP 3.5 by 35%. The price of diesel fuel was also lifted from EGP 1.8 to EGP 2.35, marking an increase of 30%.
The price of cubic metre of gas for cars was increased from EGP 1.1 to EGP 1.6. The price of gasoline 95 was left unchanged at EGP 6.25.
On 3 November 2016, the Central Bank of Egypt (CBE) decided to liberalise the exchange rate of the pound, leaving its price determined according to the supply and demand of the banks. The exchange rate of the pound against the dollar in the official market hiked from EGP 8.88 to the dollar to EGP 18.