Egypt fuel prices jump again under IMF deal, squeezing households and testing subsidy politics

Tuesday 28th October 2025

by inAfrika Newsroom

Egypt fuel prices rose by as much as 13% this month in what the government called a necessary step to cut subsidies and meet IMF targets, the oil ministry said. This Egypt fuel prices increase was the second hike in 2025. Moreover, Cairo said fuel prices will now be frozen for at least one year to give consumers “predictability,” even as inflation stays high.

The government lifted diesel to 17.5 Egyptian pounds per litre, which is roughly $0.37. It also raised 95-octane, 92-octane, and 80-octane petrol by between 10.5% and 12.7%. Officials said the state must shrink the budget deficit, reduce its energy subsidy bill, and run local refineries harder to cut import costs. In addition, Cairo said these moves align with an $8 billion IMF program that demands subsidy reform, fiscal tightening, and support for the poorest households.

However, Egyptian families are already under pressure. Inflation surged over the past year as the pound weakened, public transport fares rose, and previous Egypt fuel prices increases pushed logistics and food costs higher. The finance ministry promised wage bumps for public sector workers to soften the blow, and it said safety nets will expand. Workers in Cairo told inAfrika they doubt that relief will reach fast enough, because every jump at the pump hits taxi fares, delivery costs, and market prices the same day.

The subsidy story is now political. Egypt still says it will subsidize diesel, which powers food distribution and public transport, even as it moves other fuel grades toward market levels. Consequently, Cairo is trying to convince the IMF that it can reform without triggering unrest. The IMF, for its part, cleared earlier disbursements and said Egypt must keep narrowing the fiscal gap, trimming energy subsidies, and protecting reserves.

Therefore, investors are watching two things. First, can Egypt hold this new Egypt fuel prices band steady for a year without another sudden shock at the pump. Second, can the government keep social stability while still meeting IMF targets on the deficit, current account, and subsidy cuts. This balance will decide how fast Cairo can unlock more external money and how hard families feel the squeeze.

Why it matters for Africa: Egypt is the Arab world’s most populous country and a top wheat and fuel importer. When Egypt fuel prices move, transport and food inflation can move across the Red Sea and the Eastern Med supply chain as well. Consequently, this is not just Egypt’s story. It is a regional cost-of-living signal.