Gov’t leaves 95-octane price on hold as fuel pricing mechanism is introduced
The price of 95-octane fuel will stay unchanged as a new pricing mechanism is introduced: The price of 95-octane will be held at EGP 7.75 per liter through 2Q2019 as the automatic fuel pricing mechanism comes into effect, Reuters reports. The new pricing committee cited a stronger EGP and current Brent prices as underpinning its decision to leave the price at the pumps on hold.
Background: The IMF conditioned the disbursement of the fifth tranche of Egypt’s USD 12 bn IMF loan on the introduction of the mechanism, which will allow the price of 95-octane to fluctuate by as much as 10% in line with movements in the international markets. A committee made up of finance and oil ministry officials will re-price the fuel every three months, factoring in Brent prices and the exchange rate. The government intends to extend the pricing mechanism to 80-octane and 92-octane in the future.