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Tuesday, 13 June 2017

Fuel prices could rise by EGP 1 per litre come July

Hello, inflation: Petrol prices to go up in July? The price of 92-grade octane petrol will rise at the pumps by EGP 1 per liter to EGP 4.5 per liter starting 1 July, government sources tell Al Mal. The price of 80-grade octane will also increase as the government moves ahead with its plan to cut spending on fuel subsidies. The moves could drive inflation levels up to somewhere near the 35% mark, Arqaam Capital Senior Economist Reham El Desoki tells the newspaper. A member of parliament said he was concerned that inflationary pressures could fuel social unrest.

With the same concerns in mind, others in government are trying to delay fuel price hikes, especially since electricity prices are also slated to rise when the new budget comes into effect on 1 July, top officials tell Al Shorouk. Security officials reportedly backed the idea, worried that inflation coupled with issues like the Tiran and Sanafir debate could escalate existing tension.

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