Egypt aims to save $731.5mn from fuel price hikes

Egyptian Ministry of Petroleum and Mineral Resources is targeting savings of around EGP 38bn ($731.5mn) from the recent increase in fuel prices during the remaining four months of FY 2025/26, Al Arabiya Business reported, citing a government source. 

As part of broader efforts to rationalise energy subsidies, the ministry recently raised fuel prices by EGP 3 per litre across several categories. As a result, the price of 95-octane petrol increased from EGP 21 to EGP 24 per litre, while 92-octane petrol rose from EGP 19.25 to EGP 22.25 per litre. The price of 80-octane petrol climbed from EGP 17.75 to EGP 20.75 per litre, and diesel increased from EGP 17.5 to EGP 20.5 per litre.

The ministry cited the fallout from regional geopolitical developments, specifically the disruption of production and supply chains following military escalations involving Iran, as the primary driver for the hike. With maritime shipping costs and insurance premiums soaring, the cost of both local production and essential imports has reached levels not seen in years.

The sources said that raising the prices of petrol and diesel, the most widely consumed fuels in Egypt, is expected to generate savings of roughly EGP 28.8bn over the period. Meanwhile, higher prices for household butane cylinders are projected to save about EGP 7.2bn, while the increase in compressed natural gas used for vehicles is expected to generate nearly EGP 2bn.

Karim Badawi, Egypt’s Minister of Petroleum, said the state still bears a significant portion of the subsidy burden. He noted that the government continues to provide around EGP 30bn in subsidies for butane cylinders even after the latest price adjustments. The state is also absorbing part of the recent increase in the cost of diesel and petrol products.