Egypt on Wednesday raised the price of its diesel and other widely used fuels in a move that is expected to further boost the value of other goods and services. The country, like others, faces strong inflationary pressures in the wake of Russia’s opposition to the war. to Ukraine
In a statement, the country’s oil ministry said it would raise prices immediately. The price per liter of diesel increased from 6. 75 Egyptian pounds (0. 36 USD) per liter to 7. 25 Egyptian pounds (0. 38 USD), an increase of 7. 4%. Other types of gas saw accumulations of the same amount, with increases consistent with the accumulation of octane gas up to 1 Egyptian pound, or five US cents per liter.
The move is expected to exacerbate economic pressures on the country’s poor and average elegance that have been affected in recent years by austerity measures dictated through the government’s ambitious economic restructuring program.
Already on Wednesday, the maritime government of Cairo, the country’s capital, announced that fares for other modes of transport, adding trains, subways and taxis, would increase between 5% and 7%.
The reform program has in recent years included sharp increases in the costs of fuel, drinking water and electricity as a component of austerity measures aimed at reforming a heavy economy, which is still recovering from the years of unrest that followed the popular uprising of 2011.
In the months following the start of the war in Ukraine, the government also tried to keep up with emerging global energy values. However, diesel fuel, on which much of the company depends, was exempted from the latest price increase in April.
Egyptians have been grappling with emerging prices of staple foods and other commodities since the start of the Russo-Ukrainian war. In June, the country’s statistics office reported that annual inflation had reached 15. 3% in May, up from 4. 9% in the same month. last year.
The government has sought investment responses for the coming period. He approached the International Monetary Fund and won a pledge from Saudi Arabia for $30 billion in investments, some of which are for personal industry.
Earlier this month, the IMF said it had sent a delegation to Egypt and that talks were progressing for the country to get a new loan to help the government’s reform program.
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