Egypt introduces price index for fuel linked to oil prices

A petrol station in Cairo. (Reuters)

Egypt will implement an automatic price indexation mechanism on 95 octane gasoline starting in April which will limit price changes to 10 percent, Petroleum Minister Tarek El Molla said on Monday.

“This does not mean an increase in price during the second quarter of this year,” he said. “The price may fall or rise or stabilize at its current rate.”

Egypt is pushing ahead with tough economic reforms as part of a three-year $12 billion IMF loan deal signed in 2016.

The reforms, aimed at attracting investors, have included new taxes, deep cuts to energy subsidies and a currency devaluation.

In June, Egypt raised gasoline prices by up to 50 percent under the IMF program.

Last Update: Wednesday, 20 May 2020 KSA 09:52 - GMT 06:52