The price adjustments follow a nearly 15% increase in April and come as Egypt works to meet the terms of its $8 billion loan agreement with the International Monetary Fund (IMF). The IMF has continually pressed the government to align local energy prices with actual international costs.
New Fuel Prices Announced
The price changes, published in the country's official gazette, reflect the government’s efforts to narrow the financial gap. New per-liter prices are as follows:
| Fuel Grade | Old Price (EGP/Liter) | New Price (EGP/Liter) | Increase |
| Diesel | 15.50 | 17.50 | $~12.9\%$ |
| Gasoline 80 Octane | 15.75 | 17.75 | $~12.7\%$ |
| Gasoline 92 Octane | 17.25 | 19.25 | $~11.6\%$ |
| Gasoline 95 Octane | 19.00 | 21.00 | $~10.5\%$ |
Crucially, the Petroleum Ministry stated that domestic fuel prices will now be frozen for at least a year, citing local, regional, and global market conditions.
Economic Necessity and IMF Mandates
The decision underscores the severe economic pressures facing Egypt, which has struggled with a chronic foreign currency shortage, high debt, and persistent inflation. The government’s budget allocated for fuel subsidies had been reduced to an estimated 75 billion Egyptian pounds for the current fiscal year (FY 2025/26), down from 154.5 billion EGP the previous year.
While the government remains committed to gradually eliminating energy subsidies, it has noted that a partial subsidy on diesel will continue. Diesel is the most widely used fuel in transportation and agriculture, and its price is carefully managed to mitigate the inflationary shock on key sectors and low-income citizens.
Despite the reforms, the price hikes risk accelerating inflation and increasing the cost of living for many Egyptians, a key concern for policymakers who are attempting to strengthen social safety nets alongside the fiscal consolidation.
The IMF had previously urged Cairo to reach full cost-recovery for all fuel products by December, a target the government is moving closer to with this latest move. The reforms, however painful for consumers, are seen as essential for restoring fiscal stability and building economic resilience.