Egypt Raises FUEL PRICES up to 50%
The people of Egypt are in great shock after an increase in fuel prices by up to 50 percent. This action has been taken in order to meet the $12 billion IMF (International Monetary Fund) loan. This announcement took place on last Thursday, June 29 in Cairo.
This has been done second time since the Egyptian Government freely floated the currency in November, 2017. Government officials also say that reducing the subsidies will help restore the economy. There has been a deal to hand over two Red Sea Islands to Saudi Arabia.
Increased Fuel Prices
The Petroleum Minister, Tarek El Molla told the prices as follows: (Egyptian pounds, E)
- 92-octane gasoline – increased 40 percent (5 E from 3.5 E per litre)
- Diesel and 80-octane (the most commonly used) – increased more than 50 percent (3.65 E per litre from 2.35 E)
- The price of cooking gas cylinders (mostly used by poorer Egyptian people)- increased by 100 percent (30 E from 15 E per cylinder)
The minister also mentioned that subsidies on petroleum products (2017-18) will fall to 110 billion E from 145 billion E.
What is the reason?
As we already know that 2011 revolution in Egypt decreased the number of foreign visitors and tourists into the country. Moreover, the local currency also lost its value since last November’s announcement. Also the air has crashed and there is fear over security at ancient sites in the country. This has destroyed Egyptian tourism to a certain level but the return of certain flights from UK to Luxor can be the next step towards recovery.
In December, 2017 Sisi (Small Industries Service Institute) said that the rough and tough economic conditions of Egypt will surely change in the next few months. But as we can see that for many Egyptians the conditions had been worse. The people of Cairo are in great sense of shock and disgust!