Egypt raises fuel prices up to 30% as Middle East war bites

Egypt has raised domestic fuel prices by up to 30 percent, citing “exceptional” global energy pressures linked to the ongoing Middle East conflict that has disrupted oil supplies and shipping routes.

The increases were announced on Tuesday, March 10, by the Egyptian Ministry of Petroleum and Mineral Resources and apply to gasoline, diesel and natural gas used in vehicles.

In a statement, the ministry said the price adjustments were driven by disruptions in global supply chains, rising geopolitical risks and increased maritime shipping and insurance costs, which have pushed petroleum product prices to levels not seen in years.

Global oil markets have been volatile during the conflict involving Israel, Iran and the United States. Oil prices briefly climbed above $119 per barrel before falling to about $84 after Donald Trump said the war would likely end soon.

Under the new pricing structure, diesel, one of Egypt’s most widely used fuels, increased by three Egyptian pounds, or about 17.1 percent, to 20.50 pounds per litre from the previous 17.50 pounds. The price of 80-octane gasoline rose by roughly 16.9 percent to 20.75 pounds per litre, while 92-octane gasoline increased by about 15.6 percent to 22.25 pounds.

Meanwhile, 95-octane gasoline climbed approximately 14.3 percent to 24 pounds per litre. Natural gas used for vehicles recorded the largest increase, jumping by 30 percent to 13 pounds per cubic metre.

Egypt has raised fuel prices four times over the past two years as part of economic reforms tied to an $8 billion loan programme with the International Monetary Fund. An earlier increase of up to 13 percent implemented in October had been expected to be the final adjustment under the programme.