Egypt raises price of gasoline in latest hike amid inflation

CAIRO –

Egypt raised the worth of some varieties of gasoline Thursday, the newest hike to beset the cash-strapped North African nation amid hovering inflation.

The nation’s petroleum ministry mentioned in a press release it was elevating the worth of three octanes of gasoline from between 0.75 to 1 Egyptian pound per litre (round 2.3 to three.3 U.S. cents). The worth hike was launched Thursday morning, it mentioned.

The elevate will doubtless push up the costs of different items and companies throughout Egypt. However, the worth of diesel, essentially the most generally used gasoline for transporting folks and items in Egypt, is unaffected.

The nation has been beset by enduring worth hikes over latest months, with annual inflation standing at 26.5% in January, the very best in 5 years, based on official figures. Food costs in some city areas soared to round 48%, that month.

Egypt’s economic system has been hit onerous by years of presidency austerity, the coronavirus pandemic and the fallout from the battle in Ukraine. The nation is the world’s largest wheat importer, with most of its imports having historically come from jap Europe.

To curb its financial turmoil, Egypt obtained a US$3 billion bailout mortgage from the International Monetary Fund final December. In return, President Abdel-Fattah el-Sissi’s authorities dedicated to varied IMF-guided financial reforms, together with a free-floating change charge and a discount in gasoline subsidies.

The deal permits for an additional US$14 billion in potential financing for Egypt.

The rise in gasoline prices are more likely to exacerbate financial pressures on Egypt’s lower-income households, most of which have lengthy been reliant on authorities subsidies for primary items, resembling gasoline and bread. Nearly 30% of Egyptians dwell in poverty, based on official figures.