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Sunday, 23 October 2022

No quarterly fuel price hike for the first time in 18 months

A state committee left fuel prices unchanged at its latest quarterly meeting, defying expectations of another raise and ending a streak of six consecutive quarters of petrol price hikes, the Oil Ministry said in a statement yesterday. Fuel prices have seen a 23-28% hike since last April.

A further price hike had seemed likely: Former deputy chief of the Egyptian General Petroleum Corporation, Medhat Youssef, had said that the government would likely hike prices for the final quarter in response to rising prices.

The pause could be a welcome one amid price pressures: The committee’s decision comes after September data showed inflation hitting a four-year high of 15.0%, with transport costs up 17.9% y-o-y.

All prices will remain the same following across-the-board hikes last quarter:

  • 95-octane is EGP 10.75 per liter.
  • 92-octane is EGP 9.25 per liter.
  • 80-octane is EGP 8.00 per liter.

Mazut (fuel oil) prices remained at EGP 5k per ton for all industries except food and electricity producers, who continue to be charged EGP 4.2k per ton. Diesel will remain at EGP 7.25 per liter, after the committee hiked its price for the first time in years at its last meeting.

SOUND SMART- Global oil prices have cooled somewhat from recent highs — but there are signs that could be short-lived. Fears of a demand dip on the back of a global recession had seen crude markets retreat after peaking above USD 120 per barrel thanks to the war in Ukraine. Prices have picked up again following OPEC+’s decision to go ahead with oil cuts of 2 mn barrels per day, as well as a coming EU ban on Russian fossil fuels. Brent crude is currently trading at USD 93.50 per barrel.

The story got attention from the foreign press: Reuters.

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