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Ahram Online: Egypt: The end of fuel subsidies

The government has announced that fuel prices will now be subject to a quarterly price-indexation system replacing the older subsidies system.
15.07.19 | Interesting article at Ahram Online

After the newly increased prices of fuel and cooking gas went into effect on Friday, the government announced it would implement a quarterly price-indexation mechanism that is meant to review fuel prices every three months.

Prices were raised by 16 to 30 per cent depending on the product, including on Octane 95, 92, and 80, diesel, natural gas used for vehicles, cooking gas cylinders, and Mazut fuel used by brick factories. The prices of these products went up by 16 per cent, 18.5 per cent, 22.5 per cent, 22.5 per cent, 27.5 per cent, 30 per cent, and 28.5 per cent, respectively.

This is the fifth time that the government has increased fuel and energy prices on an annual basis.

Starting from the end of June 2019, according to a decree published in the Official Gazette on Friday by Prime Minister Mustafa Madbouli, the quarterly price-indexation system will be based on global fuel prices, the exchange rate of the Egyptian pound against the US dollar, and other variable local factors.

The prices of petroleum products should not increase or decrease by more than 10 per cent on a quarterly basis, the decree added.