By Fancy Jengboran, in Cairo
Egypt is trying to remove subsidy on petroleum products by incremental increase in prices.
The latest price increase, announced October 15, 2024, bolsters fuel prices by between 8% and 17%.
In the new prices, the cost of a litre of Diesel, the country’s most demanded petroleum product, rose by 17.4% to EGP 13.50 per litre, which is $0.28.
The priciest petroleum product in Egypt’s filling stations is 95-Octane gasoline, which is now dispensed at EGP 17.0 per litre, or $0.35. It was pushed up from EGP 15.0 ($0.3) by ;13.3%.
95-Octane is considered one of the best and purest gasoline, experts say. It supplies the cars with great efficiency and speed without causing any damage to the car’s engine. It is specifically made for newer car models, but it could be safely used by all car types.
The cheapest gasoline in North Africa’s largest economy remains the 80-Octane, which now costs EGP 13.75 per litre ($0.285), slightly more expensive than Diesel. Up until October 15, it sold for EGP 12.25 ($0.25).
Egypt is one of the world’s most tolerant economies for fuel subsidy. Its subsidy on natural gas is a key reason why its economy absorbs 6Billion standard cubic feet of gas per day and why gas export projects are often challenged by availability of gas molecules.
Despite the fact that this recent hike, the third in 2024, pushes gasoline prices by 33-38% and diesel prices by 63.6% since the beginning of the year, Egypt’s fuel prices are still relatively low in Africa.
Take a comparison with Nigeria, another African country reputed for high petroleum subsidy. Gasoline prices in Lagos, the country’s top commercial city now cost $0.62 (₦1,025), almost double the cost of the “best” gasoline that is retailed in Egypt’s fuel stations. Gasoline sold in Nigeria is not categorised.
