Diesel and octane prices in Egypt rose on Friday, with the Ministry of Petroleum and Mineral Resources issuing a statement announcing the reasons for the increase despite the global decline in fuel prices.
In a statement, the ministry explained that despite the recent decline in Brent crude and global prices, it only led to a slight decrease in the cost of a liter of diesel – estimated at roughly 40 piasters – resulting in a continued gap between the selling price and the cost.
The statement added that it does not intend to introduce any further price adjustments over the next six months.
The ministry also highlighted market expectations for the near future, given the instability of petroleum product prices due to global geopolitical and economic tensions, as well as developments in production, transportation, and import costs.
The statement confirmed that the new increase was implemented as of 6:00 am on Friday, April 11, in light of the new prices announced for petroleum products.
The statement noted that the price gap between the cost and the selling price remains due to the significant increase in costs, despite the recent price increases for petroleum products, and that these increases have not yet been absorbed.
The state is directing the largest portion of subsidies to diesel, butane, and 80/92 octane to ease the burden on citizens, the statement added.
The state imports approximately 40 percent of its diesel consumption, 50 percent of its butane consumption, and 25 percent of its octane consumption, it said.
The daily subsidy, based on the announced prices, as borne by the state due to the gap between the prices and the actual cost of various octane, diesel, and butane gas products, amounts to approximately LE 366 million per day, equivalent to LE 11 billion per month.
