Egypt Hikes Petrol Prices

June 18, 2018 Taxation in Egypt

Fuel tax EgyptCAIRO – Taxpayers across Egypt will soon be feeling a greater financial burden, hikes petrol prices and gas prices by as much as 50 percent.

Over the weekend the Oil Minister of Egypt Tarek el-Molla announced that the price of petrol and cooking fuel will be hiked, as part of the government’s austerity measures.

Egypt’s ongoing slashes to subsidies are part of a deal with the International Monetary Fund, which is calling for economic reform as part of a USD 12 billion loan package.

The price of 92-octane gasoline will now rise by 34 percent, while the price of 80-octane will rise by nearly 50 percent.

The less popular 95-octane gasoline will also rise, but only by a comparatively smaller level of 17.5 percent.

The hikes are not restricted to transport fuel only, with the gas often used for cooking and heating also going up by 60 percent for commercial use and 50 percent for household use.

While the reductions in the subsidies for fuel have won the praises of economists, they have sparked widespread derision from taxpayers who fear that the hikes will significantly impact the middle- and lower-class of Egypt.