Egypt Daily News – The International Monetary Fund (IMF) confirmed on Wednesday that Egypt remains committed to reducing fuel subsidies.
A day after approving a tranche of over $1 billion for Egypt, the IMF stated that the goal is for the country to reach cost recovery levels by the end of this year.
Ivana Holler, the IMF mission chief to Egypt, told reporters that Egypt’s commitment, made in the summer of last year, remains unchanged.
She stated, “The authorities have committed to bringing fuel product prices to cost recovery levels by the end of December 2025. This commitment has not changed and remains the most important step toward aligning retail fuel prices with cost recovery.”
On Tuesday, the IMF approved a $1.2 billion disbursement for Egypt after completing the fourth review of its economic reform program, as part of an $8 billion agreement with the fund.
Egyptian Prime Minister Mostafa Madbouly had previously pledged to gradually increase fuel prices until December 2025.
Egypt has raised fuel prices multiple times over the past three years amid a severe economic crisis that has led to a significant depreciation of its local currency against the U.S. dollar.
Currently, Egypt spends billions of dollars subsidizing fuel and energy prices for millions of consumers, a policy criticized by government officials and economic experts, including those from the IMF.
About a year ago, Cairo sharply devalued the Egyptian pound, raised interest rates by 600 basis points, and signed an $8 billion expanded financial support package with the IMF.
Egypt negotiated the agreement with the IMF following a severe currency crisis and economic strain caused by the war in Gaza, which drained revenue from tourism and the Suez Canal.
The IMF loan followed a record $35 billion investment deal with the UAE.
On Monday, data from Egypt’s Central Agency for Public Mobilization and Statistics showed that annual consumer price inflation in Egyptian cities dropped to 12.8% in February, down from 24% in January, declining at a faster pace than analysts had predicted.
