Ahmed Kamel – Egypt Daily News
Egypt expects to generate about 8 billion Egyptian pounds in additional monthly revenue following the latest increase in fuel prices, as the government seeks to reduce the burden of energy subsidies on the state budget amid rising global oil costs.
A government official told Asharq Business that the recent fuel price adjustments could reduce the state’s fuel subsidy bill by approximately 32 billion pounds during the current fiscal year 2025–2026, which ends in June.
The government recently raised prices of gasoline, diesel and natural gas for vehicles by between 14 percent and 30 percent, marking the third fuel price increase within the past 12 months. The adjustments included a three-pound increase per liter across all gasoline types and diesel.
Under the new pricing structure, gasoline prices rose across the board. The price of 95-octane gasoline increased from 21 pounds to 24 pounds per liter, representing a 14.29 percent rise. The price of 92-octane gasoline climbed by 15.58 percent to reach 22.25 pounds per liter, while 80-octane gasoline rose by 16.9 percent to 20.75 pounds per liter.
Diesel prices also increased by 17.4 percent, bringing the cost to 20.50 pounds per liter. Meanwhile, compressed natural gas used to fuel vehicles jumped by around 30 percent, rising to 13 pounds per cubic meter from 10 pounds previously.
The government also raised the price of household cooking gas cylinders. The 12.5-kilogram cylinder increased from 225 pounds to 275 pounds, while the larger 25-kilogram cylinder rose from 450 pounds to 550 pounds, an increase of nearly 22 percent.
Officials said the decision was partly driven by the surge in global energy prices triggered by the ongoing conflict involving the United States, Israel and Iran. The war has disrupted supply chains, raised shipping and insurance costs and heightened geopolitical risk in energy markets.
Iranian attacks targeting vessels near the strategic Strait of Hormuz have also significantly affected global energy markets. The waterway carries roughly one-fifth of the world’s seaborne oil trade, and disruptions there have caused sharp increases in oil and petroleum product prices worldwide, raising concerns about renewed inflationary pressures in many countries.
The Egyptian government had previously raised fuel prices twice in 2025, first in April and again in October with an average increase of about 13 percent. At the time, authorities had pledged to keep prices stable for at least a year, according to earlier statements from the Ministry of Petroleum.
Despite the latest increase, officials say diesel remains partially subsidized. The local price currently stands at 20.5 pounds per liter, while global prices exceed 30 pounds per liter, meaning the government continues to cover part of the cost.
Egypt imports more than 600,000 tons of diesel each month to bridge the gap between domestic production and consumption, according to the government source.
In the current fiscal year budget, the government allocated around 75 billion pounds for petroleum product subsidies, down from 175 billion pounds in the previous fiscal year.
Egypt remains heavily dependent on energy imports, purchasing about 40 percent of its diesel needs, 50 percent of its liquefied petroleum gas, and roughly 25 percent of its gasoline consumption from abroad.
Government data indicates that fuel subsidies currently cost the state approximately 366 million pounds per day, or nearly 11 billion pounds per month.
According to figures from the Central Agency for Public Mobilization and Statistics, Egypt’s petroleum product imports reached about $10.5 billion in 2024, compared with $7.5 billion in 2023.
Officials expect the country’s total bill for petroleum products and liquefied natural gas imports to rise to around $20 billion this year, up from about $12.5 billion in 2024, reflecting both increased demand and higher global energy prices.
