01:00 AM
Friday, March 22, 2024
Cairo – Masrawy:
The government raised gasoline and diesel prices today, Friday, an expected decision following the floatation of the pound earlier this month.
According to what was reported by Extra News satellite channel in Urgent, via its Twitter account, the increase in prices locally comes in line with international prices.
Gasoline and diesel prices in Egypt depend on several variables, including global oil prices and the dollar exchange rate in banks used to import petroleum products.
This cost rose after the Central Bank reduced the pound to levels near 47 pounds, after it had been at about 31 pounds in recent months.
Finance Minister Mohamed Maait said in a statement that more than 147 billion pounds have been allocated to support petroleum products in the new budget for the next fiscal year 2024-2025 due to the rise in global oil prices and the impact of the change in the exchange rate.
Oil prices have risen to levels above $80 per barrel in recent days amid global tensions related to supplies.
Extra News reported that, based on the President of the Republic’s directives to the government, the price of a loaf of subsidized bread will be maintained, with the state bearing the difference in the increase for ration ovens that operate on diesel or gas.
The government’s Automatic Pricing Committee for Petroleum Products holds a meeting every 3 months (it is supposed to be in the first week of January, April, July and October of each year) to determine the fate of fuel prices, but this meeting may sometimes be delayed to be held at any time in the following two months during The same quarter.
The government reviews the prices of petroleum products every 3 months through the committee formed by a decision of the Prime Minister since July 2019, based on developments in international oil prices (the average price of Brent crude during the quarter preceding the decision), and the exchange rate of the pound against the dollar, in addition to the burdens of operation inside Egypt. The percentage of increase or decrease shall not exceed a maximum of 10%.