Egypt fuel prices raised again as government fixes rates for a year

Monday 20th October 2025

by inAfrika Newsroom

Egypt fuel prices rose for the second time this year, with the government lifting diesel and gasoline rates and announcing a one-year price freeze. Officials said the move narrows the gap between import costs and retail prices while supporting fiscal reforms.

Diesel rose to 17.50 Egyptian pounds per liter from 15.50. Meanwhile, 92-octane gasoline increased to 19.25 from 17.25, and 95-octane climbed to 21.00 from 19.00. The government did not cite a single trigger. However, it framed the decision as part of a broader effort to align domestic prices with market realities.

Egypt fuel prices matter for inflation and transport costs. Annual urban inflation slowed to 11.7% in September. Even so, households remain under pressure after two years of high prices. Authorities said targeted social support will continue for vulnerable groups, including expanded food subsidies and cash transfers.

The cabinet’s pricing committee convenes quarterly. This time, it set rates for at least 12 months to provide predictability. As a result, businesses can adjust budgets and renegotiate contracts without quarterly fuel shocks. Trucking firms and public transport operators will still pass on some costs, but fixed rates reduce uncertainty.

Egypt fuel prices also affect the budget. Diesel is a major line item for state entities and public works. By shrinking the subsidy gap, officials aim to ease financing needs and redirect funds toward investment. Consequently, energy ministries will monitor usage and crack down on diversion to the black market.

The currency remains a swing factor. A steadier exchange rate has helped slow imported inflation. Nonetheless, authorities said they will keep reserve buffers and hedging tools in view to manage global oil volatility. If Brent swings, the one-year freeze will test fiscal resilience.

Industry groups called for clarity on logistics tariffs, municipal services and construction tenders. They said staggered contract clauses will help absorb higher input costs. Meanwhile, food distributors warned of second-round effects on transport-heavy products.

The central bank is watching pass-through to prices. Its recent rate cuts were calibrated to cooling inflation. If the fuel adjustment spurs a short-term bump, policymakers may slow the pace of easing. Even then, officials said the medium-term path still favors gradual disinflation.

For consumers, the headline is simple: Egypt fuel prices are higher but predictable for a year. For the state, the aim is to balance inflation risk against fiscal repair while keeping the recovery on track.