Egyptians await government decision on petrol and fuel prices

The Egyptian market is awaiting the decision of the government and the Automatic Petroleum Pricing Committee on the prices of gasoline, diesel and fuel derivatives for the first quarter of 2023.

Petroleum expert Medhat Youssef, a former vice president of the Petroleum Authority, expected price fixing for gasoline, diesel and fuel derivatives in the decision of the committee on automatic pricing of petroleum products, which the Egyptian market is looking forward to, especially after the decision has been postponed so far.

Medhat Youssef, former Vice President of the Petroleum Administration, pointed out that fixing the prices of gasoline and diesel fuel is the next step in the current period, when commodity price inflation has risen to record levels, in order to maintain the level of market prices and not push prices higher. if the price of diesel goes up.

Medhat Youssef, former vice president of the Petroleum Authority, said that the increase in diesel prices directly affects the cost of transporting goods, and with it the price of commodities, which the government could avoid in the upcoming decision of the committee on automatic pricing for petroleum products .

The former vice president of the Petroleum Administration said gasoline prices would not rise until citizens were given incentives to compensate for differences in market price changes, whether that be commodity prices or transportation costs.

And the former deputy head of the Petroleum Administration added that the International Monetary Fund offered to continue supporting diesel fuel in Egypt during the discussion of new financial and investment economic reforms, explaining that when a decision is made to extract any oil products in Egypt, an increase in prices for diesel may not be among the government’s options.

The price of fuel is most often linked to the price of the dollar, as the price of the dollar in Egypt has risen by almost 100% over the past year, from around £16 in March 2022 to £32 in March 2022. January 4, 2023 before settling down at 31 pounds in Egypt.During the last period.

According to oil experts in Egypt, the Egyptian Energy Pricing Committee, which is responsible for setting prices for gasoline and diesel fuel in 2023, relies on basic pricing rules that include changes in the dollar, global oil prices, refining and transport prices and fees. The pricing committee has the right to raise the prices of gasoline and diesel fuel in Egypt by 10% or lower them by the same percentage so as not to cause a crisis or shock in the market.

Source: Cairo 24