Prime Minister Mostafa Madbouly discussed the possibility of the government reducing petroleum product prices in Egypt, following recent global price decreases due to regional stability and the decline in global oil prices.
During his weekly press conference on Wednesday, Madbouly said that at the beginning of the 2025/ 2026 fiscal year, the price of oil was US$62 per barrel but the budget was based on a price of $75 per barrel, as it was calculated for a full year.
He reminded the public that just one day before the outbreak of the US-Iran war, the price per barrel was $69.
Madbouly said that after the government’s decision to adjust petroleum product prices, the global price reached $93 – an increase of approximately 50 percent.
“After this date, prices reached $125 per barrel in April. Did the state take any additional measures to increase prices at that time? The natural and logical thing to do would have been to increase prices, but we did not do that. The increase was almost 100 percent in the price of oil, yet the state did not take any additional measures. The decision at that time was for the government to bear the price difference on behalf of citizens,” he said.
“Another important point to consider is that we are currently in the summer season, and consumption increases. Therefore, it is essential to support the Petroleum Authority to compensate for the price differences it has incurred recently.”
Deciding a fair price
The Prime Minister indicated that starting in the first quarter of the current fiscal year (within the next three months), the committee responsible for setting petroleum product prices will reconvene to study and approve a fair price for petroleum products.
The automatic pricing mechanism will soon be reinstated, he explained, and the committee will consider the established criteria to determine whether to increase or maintain prices based on current data and averages, he said.
Madbouly concluded, “We are committed to not placing any additional burdens on citizens. This is a completely transparent explanation of how the state is handling the situation, and that is why international institutions have praised the Egyptian government’s management of the repercussions of the war and the regional crisis.”
Edited translation from Al-Masry Al-Youm
