IMF: Egypt to raise fuel for cost price in mid-June



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10:32

Saturday, April 6, 2019

I wrote – Yasmin Salim:

The International Monetary Fund said on Saturday that Egypt would raise fuel prices to reach the cost price in mid-June.

He added in the fourth review report of the economic reform program for Egypt made available by the Fund earlier in the day that "Egyptian authorities committed to reaching the price of fuel for the cost price in mid-June."

According to the report, the government will not increase the price of liquefied gas, fuel used in bakeries and the generation of electricity.

The report said current fuel prices in Egypt are between 85 and 90% of the price of its cost.

According to the Egyptian government in the audit report, it will have to apply an additional increase in fuel prices to reach 100% of the cost price by mid-June, except for the prices of liquefied gas, fuel used in bakeries and electricity generation .

In December, the government announced the introduction of the automatic pricing mechanism on 95 octane gasoline, and at the end of last month, gasoline prices were revised according to the mechanism and they decided to install it for the current price.

According to the report, the implementation of automatic price mechanism for the rest of the other petroleum products products will be on June 5 next to the first price adjustment under the mechanism in September 2019.

The government has promised in the report to cancel final support for oil products, which will raise prices in June.

The idea of ​​the automatic petroleum product pricing mechanism is simply based on the formulation of a price equation, including world oil prices, the pound exchange rate against the dollar, and operating charges within Egypt, and lower the price of the product. Energy support in the state budget.

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