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Fuel price hikes in Egypt amid global inflation pressures

Fuel price hikes in Egypt amid global inflation pressures
A picture taken on June 29, 2017, in the Egyptian capital Cairo shows fuel dripping from a hose as a petrol station worker fills up a customer's tank while cars queue in line.   -  
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Fuel prices in Egypt have been increased by nearly three percent as global inflationary pressures spike in the wake of Russia's war on Ukraine.

The increase took effect on the morning of Friday, April 15.

The new prices were announced on the cabinet's Facebook page. The price of 95 octane gasoline increased to 9.75 Egyptian pounds ($0.53) per liter from 9.5. Meanwhile, the cost of 92 octane rose to 8.75 from 8.5, and 80 octane rose to 7.5 from 7.25.

The prices of diesel, which is the main fuel used to transport goods and commuters were however not affected by the new hikes.

Fuel prices hikes are expected to reflect inflation rates, which already jumped from 10 percent in February to 12 percent in March, according to the state-run statistics bureau.

Last month, Egypt's Central Bank raised its key interest rate for the first time since 2017 to contain soaring inflation. The move saw the Egyptian pound slip, trading at over 18 to the dollar up from an average of 15.6 pounds for $1.

The war in Ukraine has negatively affected the global economy. As a result, not only food supplies and livelihoods have been threatened. Last month, Brent crude oil hit a record high of $140 per barrel before lately coming down to nearly $112.

Like many emerging markets, Egypt also witnessed capital outflows in the wake of the war, which brought the country's net foreign reserves down to $37.082 billion by the end of March, compared to $40.99 billion in February.

In a bid to stabilize the Egyptian economy, Saudi Arabia, Qatar and the United Arab Emirates pledged a total of $22 billion in the form of deposits and direct investments.

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