- Title: Egypt raises energy prices
- Date: 4th November 2016
- Summary: CAIRO, EGYPT (NOVEMBER 4, 2016) (REUTERS) VARIOUS OF CARS IN GAS STATION GAS STATION EMPLOYEE SEEN FILLING UP GAS TANK GAS PUMP SHOWING NEW PRICE OF GAS MORE OF QUEUES AT GAS STATION (SOUNDBITE) (Arabic) ENGINEER, AHMED SABRY, SAYING: "It's very normal in countries around the world to not have subsidized gas, we need to realise this and admit this, and Egypt has to start working (and developing)." VARIOUS OF BUS SEEN IN GAS STATION MORE OF CARS INSIDE GAS STATION (SOUNDBITE) (Arabic) TAXI DRIVER, ATEF, SAYING: "This happened all of a sudden. I drove into the gas station to fill up my tank, as usual, and I swear I never expected this nor did I prepare for it. If I had prepared for it, it would have been ok, because a week, ten days, or a month before, would have been enough time. But now it's all of a sudden, and things are going to get more expensive. I bet you anything that from this increase in prices of gas, the price of everything else will increase 200 or even 300 percent." VARIOUS OF CARS QUEUEING IN GAS STATION
- Embargoed: 19th November 2016 03:03
- Keywords: Egypt Engery Gas Price
- Location: CAIRO, EGYPT
- City: CAIRO, EGYPT
- Country: Egypt
- Topics: Government/Politics
- Reuters ID: LVA0015710ZEV
- Aspect Ratio: 16:9
- Story Text: Egypt raised energy prices from Friday (November 4), a day after the central bank floated the pound currency.
The petroleum ministry announced the new price list on Thursday (November 3).
The move, which came into effect at midnight local time (2200 GMT) on Thursday, comes as part of Egypt's austerity measures aimed at securing a three-year, $12 billion International Monetary Fund loan agreement.
The price of 92 octane gasoline will rise 34.6 percent to 3.5 Egyptian pounds ($0.2258) from 2.6 pounds per litre while 80 octane gasoline will go up 46.8 percent to 2.35 pounds from 1.6.
Diesel will rise to 2.35 pounds per litre, an increase of 30.5 percent from 1.8. The less commonly used natural gas for vehicles will rise by 45.5 percent to 1.6 pounds per cubic meter, up from 1.1 pounds.
It will be the second time Egypt has raised fuel prices in recent history. In 2014 it increased prices by up to 78 percent to ease pressure on a swelling budget deficit.
"It's very normal in countries around the world to not have subsidized gas, we need to realise this and admit this, and Egypt has to start working (and developing)," said Ahmed Sabry after filling his tank.
The government said at the time it would eliminate fuel subsidies completely for five years but a fall in global oil prices had delayed a decision ever since.
Food and energy subsidies traditionally eat up a quarter of Egyptian state spending. The government is cutting subsidies in hopes of reviving an economy battered by years of political turmoil since a 2011 uprising.
But the news came as a surprise to many, including Taxi driver Atef.
"This happened all of a sudden. I drove into the gas station to fill up my tank, as usual, and I swear I never expected this nor did I prepare for it. If I had prepared for it, it would have been ok, because a week, ten days, or a month before, would have been enough time. But now it's all of a sudden, and things are going to get more expensive. I bet you anything that from this increase in prices of gas, the price of everything else will increase 200 or even 300 percent," he said.
Successive governments have failed to curb energy product subsidies, fearing backlash from a public used to cheap fuel. - Copyright Holder: REUTERS
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