Egypt raises fuel prices for the first time in 2025 to reduce subsidy costs
Egypt increased fuel prices by nearly 15% on Friday. This is the first time fuel prices have gone up in 2025, according to a statement from the Ministry of Petroleum and Mineral Resources.
Fuel Price Increase
Egypt has raised fuel prices to reduce government spending on fuel subsidies. This was a condition for receiving an $8 billion loan package from the International Monetary Fund (IMF).
The price increase, which varies between 11.76% and 14.81% depending on the fuel type, was announced shortly after the IMF gave Egypt $1.2 billion as part of a loan agreement signed last year.
-
Diesel now costs $0.30 (EGP 15.50) per liter, up from $0.26 (EGP 13.5).
-
Gasoline prices also went up:
-
80 octane: $0.31 (EGP 15.75)
-
92 octane: $0.34 (EGP 17.25)
-
95 octane: $0.37 (EGP 19)
-
-
Cooking gas (butane) went from $2.92 (EGP 150) to $3.90 (EGP 200) per cylinder.
Last month, Prime Minister Mostafa Madbouly said the government plans to end fuel subsidies by the end of the year to reduce financial pressure. However, diesel will still receive some government support and won’t be sold at full price.
Spending on Subsidies
Even after raising fuel prices three times in 2024, Egypt still spends about $197.71 million (EGP 10 billion) every month on fuel subsidies, according to Petroleum Minister Karim Badawi.
IMF Loan Support
Since 2016, Egypt has signed several loan deals with the IMF, starting with a $12 billion program to help rebuild its economy after the Arab Spring.
The IMF has pushed Egypt to reduce subsidies on fuel, electricity, and food, while improving support programs for low-income people.
In March, the IMF said Egypt agreed to cut energy subsidies so that fuel prices fully cover their costs by December. This is part of a bigger plan to fix the country’s large trade and budget problems.
Published: 14th April 2025
For more article like this please follow our social media Twitter, Linkedin & Instagram
Also Read:
UAE banks’ investments up 16% to $202B in January
Egypt to Issue $2B in Islamic Bonds in 2025: Ministry
Egypt to Sell Army Firm Shares via Investment Fund
