Egypt has increased the price of diesel by almost 14 per cent to reflect the recent gain in global crude oil prices and the decline of the local currency.
Starting on Thursday, the fuel that powers most of the country's public transport sector will cost users 8.25 Egyptian pounds ($0.27) a litre, an increase of 1 pound.
The decision was made “in light of the increase in international prices for crude oil and petroleum products and the exchange rate of the pound against the dollar”, Egypt's domestic fuel pricing committee said in a statement.
Consequently, public bus fares will be increased by 10 per cent, the Egyptian Ministry of Local Development said.
The price of petrol will remain unchanged.
The meeting was the second this year. At the first, in March, the committee raised domestic fuel prices by 0.75 Egyptian pounds for 80-octane petrol to 8.75 pounds a litre, and by 1 pound to 10.25 pounds for 92-octane fuel.
The price of premium 95-octane petrol was raised by 0.75 pounds to 11.50 pounds a litre.
The price of natural gas for vehicles was also increased from 3.75 pounds a cubic metre to 4.50 pounds.
To secure funding from the International Monetary Fund, Egypt has agreed to gradually reduce subsidies offered to its population of 104 million, about 30 per cent of whom are living below the poverty line.
The country’s Finance Ministry has allocated 119.4 billion Egyptian pounds, or about $3.8 billion, to subsidise petroleum products in the 2023/2024 fiscal year, it said earlier this year.
