Egypt raised gasoline prices in the previous periodic review by the highest rate since fuel liberation in 2019
Economist Medhat Nafie expected, in an interview with Al-Arabiya, today, Thursday, that the automatic pricing committee for petroleum products in Egypt would fix fuel prices.
Nafeh said that the expectations of stabilizing fuel prices in the next quarterly review are due to several factors and divergent external and local signals.
He explained that oil prices are recording gains with the “OPEC +” reduction in the volume of production, and there are expectations of a calming of the monetary tightening by the US Federal Reserve, supported by positive data regarding inflation, which will be reflected in the weakness of the dollar, just as the winter season is regarding to end and with it the demand will decline. on natural gas.
He continued, “Europe has succeeded in neutralizing the Russian gas weapon.”
He added that inflation rates in Egypt recorded record levels, and that any move to increase the prices of oil derivatives would exacerbate inflation to greater levels, and would have major negative repercussions on security and social peace.
It is worth noting that the Egyptian Ministry of Petroleum said last March that the Automatic Pricing Committee for Petroleum Products, in a quarterly review, raised domestic fuel prices by EGP 0.75 for 80-octane gasoline, EGP 92-gasoline and EGP 0.75 for 95-gasoline.
The statement said, “In light of the fluctuation of Brent crude prices and the exchange rate of the pound once morest the dollar, the Automatic Pricing Committee for Petroleum Products decided … to recommend an adjustment to the current prices prevailing in the local market, as the selling price of gasoline products has been modified … to become as follows: 8.75 pounds per liter of gasoline.” 80 and 10.25 pounds per liter of 92 petrol, and 11.50 pounds per liter of 95 petrol.
The committee stated that the selling price of a ton of diesel for other than electricity and bakery uses will be 6,000 pounds per ton. It was also decided to fix the selling price of diesel at EGP 7.25 per liter and fix the price of diesel fuel supplied to electricity and food industries.
The committee decided to increase the car supply gas to 4.50 pounds/meter. The new increase in gasoline prices is the largest in terms of value since the liberalization of the fuel price in July 2019.