Crystal Dike
Egypt on Friday, October 17, announced another round of fuel price increases, marking the second adjustment this year as the government intensifies efforts to cut costly energy subsidies and narrow its growing budget deficit.
According to the country’s official gazette, the latest hike ranges between 10.5% and 12.9%, following an earlier 15% surge in April 2025. The Ministry of Petroleum and Mineral Resources stated that domestic fuel prices will now be frozen for at least one year after this increase, citing both domestic and international economic pressures.
The ministry said Egypt’s oil sector will continue operating refineries at full capacity, settle outstanding debts with foreign partners, and implement measures to encourage production and reduce import costs.
Among the revised prices, diesel—Egypt’s most widely used fuel—rose by 2 Egyptian pounds, bringing the new price to 17.50 pounds per liter, up from 15.50 pounds. Gasoline prices also climbed sharply, with 80 octane now at 17.75 pounds, 92 octane at 19.25 pounds, and 95 octane at 21 pounds per liter.
The government reiterated its commitment to phasing out energy subsidies and aligning domestic fuel prices with global market rates by December 2025, in line with recommendations from the International Monetary Fund (IMF). However, it pledged to maintain diesel subsidies, even if this requires raising prices of other fuels above cost to finance them.
The IMF, which approved an $8 billion loan package for Egypt earlier this year, has urged Cairo to reduce subsidies on fuel, electricity, and food, while expanding social protection programs to shield low-income citizens.
According to Central Bank data, Egypt’s current account deficit reached $2.2 billion in the second quarter of 2025, while petroleum product imports rose to $500 million, up from $400 million a year earlier.
Economists say the move underscores Egypt’s balancing act between fiscal reforms and maintaining social stability amid rising living costs and inflationary pressures.