Fuel prices hiked by up to 3.8%
Fuel prices hiked for second consecutive quarter: The government raised fuel prices by up to 3.8% over the weekend in response to rising international oil prices, the Oil Ministry said in a statement on Friday. This means that motorists will now pay an extra EGP 0.25 per liter for 95, 92 and 80 octane fuel during 3Q2021. As of Friday:
- 95-octane has risen 2.9% to EGP 9 per liter, up from EGP 8.75;
- 92-octane has risen 3.2% to EGP 8, from EGP 7.75;
- 80-octane has risen 3.8% to EGP 6.75, from EGP 6.50.
Diesel and mazut prices remain unchanged: Prices of mazut fuel oil for use in factories will remain at EGP 3.9k per tonne, while diesel prices are still EGP 6.75 per liter.
This is the second consecutive price hike: Fuel prices have now risen 5.9-8% so far this year after the fuel pricing committee made a similar increase at the beginning of 2Q2021.
These prices will remain fixed until through 3Q2021 and will be reviewed again by the fuel pricing committee at the beginning of 4Q in October.
The price of oil has been on a tear so far this year, surging more than 43% as increasing demand and covid-era production cuts cause global supply to tighten, Brent increased 18% during 2Q alone, surpassing the USD 76/bbl mark for the first time since November 2018.
Brent is now significantly above the benchmark price used to calculate the state budget: The Finance Ministry estimated that Brent will average USD 60/bbl during the current fiscal year, a level which hasn’t been seen since the end of 1Q2021.