According to official sources at petroleum product distribution companies, the companies have not yet received any notifications about the decision to increase the prices of fuel, and that the concerns about the new price schemes are false.
The sources added that the distribution companies are entities that implement fuel prices increases, and do not to participate in the issuance of the decision or determine the value of the increase.
They said that the distribution companies do not participate in the studies of the status of the market and the extent of its ability to absorb the decision, and that prices of fuel are subject to sovereign decisions.
Moreover, according to the sources, decisions to change the prices of petroleum products cause a change in the fuel consumption map in the market, as occurred in the recent increase in July 2017, which led to increased consumption of 95 octane petrol, as the price of 92 octane was very close to the former’s price.
Egypt aims to gradually cut subsidies until they are lifted fully, in accordance with an agreed programme with the International Monetary Fund to lend Egypt $12bn, of which it has so far received about $6bn and is awaiting a fourth tranche worth $2bn, due in June.
This is the third time that the government will raise fuel prices since the floating of the pound in November 2016. The last rise was in June 2017.
Minister of Petroleum and Mineral Resources Tarek El-Molla said in a previous statement that petroleum products are still subsidised despite the several increases in prices. He pointed out that the ministry covers 65% of the cost of petroleum products.