Egyptian authorities decided to reduce fuel prices by 3% on Friday, lowering petrol prices by 25 piastres, as crude prices are in free fall on the back of the ongoing coronavirus pandemic. On Friday, Brent crude was trading at just above $33.87 a barrel, gaining momentum on the back of the OPEC+ deal.
The price of a litre of octane 92 petrol decreased to EGP 7.5, from EGP 7.75. The price of octane 80 petrol fuel decreased from EGP 6.75 to EGP 6.5. The price of octane 95 petrol decreased from EGP 8.75 to EGP 8.5, while the price of liquefied petroleum gas (LPG) cylinders remained unchanged.
Egypt has, since September 2019, committed to implementing the automatic price indexation mechanism, linking fuel prices to international crude oil prices and exchange rates.
The government decision falls in line with promises to reduce fuel subsidies under the agreed upon reform plan with the International Monetary Fund (IMF) to secure a $12bn loan.
In January 2019, Egypt and the IMF agreed to implement several reform measures, including the implementation of a fuel price indexation mechanism for all fuel products in June 2019. Exempted from this indexation was octane 95 petrol (which fell under an earlier decree issued in December 2018), liquefied petroleum gas (LPG), and fuel oil used in bakeries and for electricity generation.