Ahmed Kamel – Egypt Daily News
Egypt’s Minister of Petroleum and Mineral Resources, Eng. Karim Badawi, announced that the next increase in fuel prices expected during the first week of October 2025, will be the final hike as the country completes the process of subsidy reform.
Speaking during a meeting with editors-in-chief of national newspapers, Badawi said:
“The upcoming increase in fuel prices will be the last, and no further hikes are planned after that.”
This declaration aligns with earlier remarks made by Prime Minister Mostafa Madbouly, who indicated that the October adjustment may mark the end of a years-long effort to phase out fuel subsidies. According to Madbouly, the government will retain some level of support for diesel (solar) prices, given its direct impact on daily life and several key industries.
After this final round of increases, fuel prices in Egypt will be governed by the automatic pricing mechanism, which links local prices to global Brent crude prices, exchange rates, and other international market factors.
Partial Diesel Subsidies to Remain
Sources within the Ministry of Petroleum told Veto that the state is expected to maintain partial subsidies on diesel, due to its critical role in sectors such as agriculture, transportation, and manufacturing. Officials are reportedly concerned that a complete removal of diesel subsidies could trigger a knock-on effect on prices for essential goods and services.
The upcoming fuel price adjustment will complete Egypt’s subsidy reform roadmap, a long-standing part of the government’s economic reform program launched in 2016 in cooperation with the International Monetary Fund (IMF).
The transition to full market-based pricing is aimed at easing pressure on the state budget, encouraging energy efficiency, and aligning domestic prices with international trends.
However, authorities have repeatedly emphasized that social protections will remain in place for vulnerable groups, particularly those most affected by rising energy costs.
