Egypt lowers fuel prices LE 0.25 per liter during quarterly review

CAIRO – 10 April 2020: Egypt's Fuel Automatic Pricing Committee decided, Friday, to decrease the fuel prices slightly by LE 0.25 per liter, following the exceptional circumstances that the global oil markets has been witnessing as a result of the emerging Coronavirus, COVID-19 crises.

The announced new prices to be: LE 7.50 per litre for 92 octane gasoline, down from LE 7.75, LE 6.25 per litre for 80 octane gasoline, down from LE 6.5 and LE 8.50 per litre for 95 octane gasoline, down from LE 8.75. The new prices will come into force as of Saturday, April 11.

The ‘automatic pricing mechanism’ aims at adjusting the sale prices of some petroleum products in the local market every three months, based on two key determinants in the domestic market, namely Brent Crude oil price and the change in the value of the USD against the Egyptian pound, according to the statement.

These two key determinants come beside other fixed charges and costs, which are being adjusted annually in September after the approval of the previous fiscal year budget by the Central Auditing Organization.

In October 2019, Egypt's Fuel Automatic Pricing Committee decided to decrease the prices of all three types of petrol products in the local market by 25 piasters per liter to become amid a range of LE6.5, LE7.75, and LE8.75.

Industrial-use mazut price was lowered by EGP 250 per ton, putting the price of the ton at EGP 4,250.

However, later in January the committee decided to maintain the prices of petroleum products for three following months, starting from January until the end of March.

Egypt has adopted the automatic pricing mechanism since last July aiming to provide flexibility to enable state institutions to provide the best service for all citizens.