Egypt Daily News – After confirming ending the subsidies in by December 2025 here is the proposed scheduled increase in gasoline and diesel prices. The Egyptian market is awaiting the decision of the Fuel Pricing Committee regarding the first fuel price review (including gasoline and diesel) in 2025.
The Pricing Committee for Petroleum Products, responsible for reviewing and determining the selling prices of gasoline, diesel, LPG cylinders, natural gas, and other petroleum products, meets quarterly (every three months).
The next meeting of the Pricing Committee for Petroleum Products, will be held in April 2025. This comes after prices have been fixed for six months since the last increase implemented in October 2024.
Elimination of Petroleum Product Subsidies by the End of 2025
Prime Minister Dr. Mostafa Madbouly stated, following the last fuel price increase in October, that petroleum product prices would not rise for the next six months.
He further explained in statements last Thursday that fuel prices would gradually increase until subsidies are completely removed by the end of 2025.
At the same time, he noted that LPG cylinders would remain partially subsidized as part of the government’s support plan for the most vulnerable groups, and diesel would also continue to receive subsidies. He added, “Our plan is to stop the financial drain by the end of the year, but there will still be partial support. We will never reach a point where diesel is sold at its full cost.
The LPG cylinder will remain significantly subsidized. All of this has been planned and announced before while considering the economic conditions, and we have committed to a period during which prices will not increase.”
Dr. Maait, Executive Director of the Arab Group at the International Monetary Fund, also confirmed in a press statement that the Egyptian government will end fuel subsidies and fully increase gasoline and diesel prices by December 2025.
Gradual Increases Until the End of 2025
These price increases will not be implemented all at once but will be spread throughout the year across three meetings of the Petroleum Pricing Committee until the end of 2025. It is expected that these increases will be divided across the meetings to minimize their direct impact on citizens.
Break-even Point Between Cost and Selling Price
Fuel prices in Egypt reached a break-even point between cost and selling price in 2020 during the COVID-19 crisis when global oil prices dropped.
Decision-Making Process
The committee decides whether to raise, fix, or even lower prices based on several factors, including the global price of a barrel of Brent crude, the exchange rate of the dollar against the Egyptian pound, and other fixed costs and expenses. These expenses are adjusted annually in September following the approval of the previous fiscal year’s budget by the Central Auditing Organization.
Automatic Pricing System for Petroleum Products
The government adopted this system in July 2019. The Pricing Committee for Petroleum Products includes representatives from the Ministry of Petroleum and Mineral Resources, the Ministry of Finance, and the General Petroleum Authority.
