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Wednesday, 23 June 2021

Fuel prices unlikely to go up in 3Q

The Madbouly government’s fuel pricing committee is likely to leave prices unchanged for 3Q when it meets during the first week of July, former oil minister Osama Kamal said on Sada El Balad yesterday (watch, runtime: 7:01). The committee — which meets every quarter to review fuel prices under a pricing mechanism that pegs prices to Brent crude and global exchange rates — will discuss whether the recent rise of global oil prices warrants a hike in fuel prices here at home. This is unlikely, according to Kamal, who said that projects to upgrade the country’s power infrastructure have decreased the country’s oil consumption, suggesting that there is now less of a need to raise prices in line with what is happening internationally.

This really depends on how much further oil rises over the next two weeks: Brent eclipsed the USD 70/bbl mark for the first time since October 2018 last week, and is now up to USD 75/bbl. This is USD 10 above the benchmark price used to calculate the FY2021-2022 state budget.

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