Prime Minister Mostafa Madbouly stated, during a Wednesday press conference held at the Cabinet headquarters in the New Administrative Capital, that the state will continue to subsidize diesel even after the latest increase, as one liter of diesel costs the state LE 20 but is sold to citizens for LE 17.5 after the recent adjustment.
“The value of petroleum product subsidies in the current budget is LE75 billion,” he explained.
“Society was prepared that an anticipated fuel price hike would occur, and this increase has brought us to a stage of balance.”
“The government hid nothing and has discussed this issue with complete transparency for some time. The state shouldered very large financial burdens, and correction was necessary to ensure sustainability,” he continued.
Madbouly emphasized that fuel pricing in Egypt is not solely linked to the global price of Brent crude but is tied to other additional dimensions, stating: “We have come a very long way in the fuel pricing file due to years of delayed course correction. Had we decided to collect the increase in one go rather than gradually, there would have been terrible repercussions in price inflation.”
The Prime Minister added that the state is currently studying the adoption of social protection measures to support the most vulnerable and low-income groups.
He confirmed that he is set to meet with the social justice group to study the implementation of measures to support low-income citizens in the coming period.
