Egypt raises fuel prices to promote economic reform

Source: Xinhua| 2019-07-05 18:18:34|Editor: xuxin
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CAIRO, July 5 (Xinhua) -- Egypt on Friday hiked fuel prices by up to 30 percent to meet the terms of a loan deal of 12 billion U.S. dollars and push implementing the economic reform plans, the Oil Ministry said in a statement.

The price of 92 octane gasoline increased from 6.75 Egyptian pounds (0.41 dollars) to 8 pounds per liter. The price of 80 octane gas increased from 5.5 pounds to 6.75 pounds per liter.

Moreover, the price of 95 octane gas increased from 7.75 pounds to 9 pounds, while the price of cooking gas cylinders increased by 30 percent to reach 65 pounds.

The new prices went into effect on Friday morning, said the statement.

This is the fourth time the government has increased fuel prices since austerity measures were announced late 2015.

Fuel oil prices for cement and bricks factories reached 4,500 pounds per ton instead of the previous 3,500 pounds, said the statement, adding the fuel prices for food industry and electricity have not increased.

Egypt has been suffering economic slowdown over the past few years of political instability and relevant security challenges.

The country hopes to increase production and exportation and revive tourism as ways to boost its economy, along with a strict three-year economic reform plan, which started in late 2016, based on austerity measures, fuel and energy subsidy cuts and tax hikes.

Including full local currency floatation, Egypt's reform plan has been encouraged by a 12-billion-dollar loan from the International Monetary Fund, last third batch of which has been approved in May.