Prime minister says planned rise in fuel prices to be gradual, diesel to remain subsidized

CAIRO – 26 March 2025: Prime Minister Mostafa Madbouly noted that the government will implement “gradual” increases in fuel prices until the end of the year, as the rise cannot occur all at once.

Speaking at a press conference following the weekly Cabinet meeting on Wednesday, Madbouly reassured citizens that diesel fuel will continue to be subsidized.

Earlier in March, the International Monetary Fund (IMF) stated that Egypt, which is connected to the lender via an $8 billion Extended Fund Facility (EFF) loan program, remains committed to lifting fuel subsidies by the end of 2025.

Last year, the government unveiled its plan to gradually lift fuel subsidies, citing “a significant burden on the budget.”

The country has raised fuel prices multiple times over the past decade, with the latest increase for gasoline and diesel occurring last October, valued at up to LE 2 ($0.04) per litre.

IMF Managing Director Kristalina Georgieva emphasized in March 2024 the importance of Egypt replacing untargeted fuel subsidies with targeted social spending as part of a sustained fuel price adjustment package.