Fuel Subsidies Hike in Egypt

Subsidies for petroleum products in Egypt rose by around 9% year on year (YoY) to EGP 72 billion (US$1.52 billion) in the first half (H1) of the current fiscal year (FY) 2023/2024, four government officials in the know told Asharq Business. One source noted that the targeted annual fuel subsidies for this FY could increase due to the surge in global fuel prices and the geopolitical tensions in the Red Sea.

It is worth noting that petroleum subsidies for the last FY soared 109% YoY to EGP 125 billion (US$2.64 billion), compared to EGP 59.8 billion (US$1.26 billion). The government expects fuel subsidies to amount to EGP 130 billion (US$2.75 billion) for the current FY. On March 22nd, Minister of Finance Mohamed Maait announced that the government plans to review the subsidy for petroleum products in FY 2024/2025 budget, following the recent increase in the prices of all categories of gasoline and diesel.