The ministry added in a statement that gasoline prices remained at 8.75 pounds ($0.2827) for 80-octane gasoline, 10.25 pounds ($0.3312) for 92 octane gasoline and 11.50 pounds ($0.3716) for 95 octane gasoline.
It should be noted that the committee, at its previous meeting, decided to increase the price of gasoline in Egypt by about 75 piastres to the price of 80 gasoline, the most consumed in the Egyptian market, such as the highest rate of increase since the creation of the automatic pricing committee for petroleum products.
The Committee for Automatic Pricing of Petroleum Products meets at the beginning of every 3 months to discuss diesel and gasoline prices and relate them to the international price. It implements automatic pricing enforcement mechanisms for petroleum products in Egypt on a quarterly basis.
The mechanism of the committee’s work to link the prices of petroleum products in Egypt to the world market depends on several elements, including:
The dollar exchange rate, world crude prices, refining price, transportation and other fees equitably.
The committee is also required not to increase or decrease prices by more than 10%, so as not to cause a major movement in the market or to fix prices.
The Egyptian government aims not to exceed subsidies for petroleum products in the budget for the current financial year 2022-2023, which amounts to 28 billion pounds. While the fuel subsidy bill in the final tally of the 2021-22 budget stood at £59bn, a 212% increase on the 2020-21 financial year which recorded £18.9bn .
On the other hand, Egypt, like most other countries in the world, is suffering from high inflation rates due to the war in Ukraine and before it the Corona epidemic, since its highest level ever recorded in July 2017, which then amounted to 32.95 percent.
Meanwhile, the International Monetary Fund’s latest forecast for Egypt indicated a slowdown in the pace of growth from 6.6% in 2022 to 3.7% in 2023 due to tight financing conditions and the depreciation of the pound. during the previous period, in addition to a high rate. inflation which will lead to the erosion of household purchasing power and weak external demand growth.
The fund said Egypt still faces strong pressure on exchange rates and international reserves.
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