Egypt eyes October fuel price adjustment as IMF reviews approach

CAIRO - 17 September 2025:Prime Minister Mostafa Madbouly announced that gasoline prices are expected to rise in October, which could be the final increase if international price trends remain steady.

He explained that while fuel pricing will shift to a new market-linked mechanism, partial subsidies on diesel will continue in order to shield key sectors from higher costs.

Under the new system, gasoline, diesel, and butane cylinder prices will be aligned more closely with real costs while maintaining a degree of consumer protection.

Starting from the next phase, prices will move automatically—up or down—in line with market conditions.

Diesel, however, will remain subsidized to a certain extent, with the gap covered by slightly higher margins on other petroleum products. This reflects the critical role diesel plays in operating costs and its direct impact on inflation.

The Automatic Pricing Committee is set to meet at the end of September to determine fuel prices for the final quarter of 2025, with increases expected to remain below 10%.

Meanwhile, fuel subsidies in the current budget have been reduced to EGP 75 billion, compared to EGP 154.5 billion last year.

Madbouly highlighted that Egypt’s ability to overcome recent economic challenges is proof the country is on the right track, stressing that no new IMF program will be needed.

He noted that it will take about five years to ensure sustainable growth, with reducing the trade deficit being the government’s top priority. He also underscored ongoing efforts to improve living standards, cautioning that such progress requires patience and time.

On the financial front, Finance Minister Ahmed Kouchouk confirmed that Egypt is well-positioned to pass the fifth and sixth reviews of its $8 billion IMF program.

Speaking at a roundtable hosted by the American Chamber of Commerce in Cairo, he pointed to the country’s solid ties with the IMF, World Bank, and other international partners. The upcoming reviews are expected to unlock around $2.5 billion in fresh disbursements.