Egypt to hold exceptional fuel pricing review amid rising oil costs

Egypt’s fuel pricing committee is expected to convene an exceptional meeting within the next two months to reassess domestic fuel prices, as global energy market pressures intensify, Al Borsa reported on March 25, citing a government source.

The committee has already begun preparing projections based on Brent price trends and the Egyptian pound’s exchange rate against the US dollar. The move comes after futures for Brent crude oil for May delivery rose by around 1.3% to nearly $100 per barrel, driven by escalating geopolitical tensions in the Middle East.

The projections will help determine a revised pricing structure for petroleum products to be applied from FY 2026/27.

Earlier on March 10, the government raised fuel and gas prices by between 14 and 30% in response to energy pressures driven by the Middle East tensions. Despite the increase, a significant pricing gap remains. The global cost of diesel is estimated at around EGP 37 ($0.7) per litre, compared to lower domestic selling prices, leaving the state to absorb a subsidy gap of roughly EGP 17 per litre. For petrol, the gap ranges between EGP 9 and 12 per litre depending on the grade.

The source noted that any further adjustments will largely depend on the escalation of the tensions، particularly its impact on oil and gas import costs. Prices for liquefied natural gas have already surged from an average of $12–14 per million British thermal units to nearly $20.

Egypt imports around 700,000 tonnes of diesel monthly, covering nearly half of domestic consumption, while petrol imports account for about 26% of market demand.