Egypt raises fuel prices for second time in less than a year

Egypt raised the prices of fuel by up to 55 per cent today, the second such increase since the local currency was floated seven months ago, as the country struggles with an array of economic woes including a double- digit inflation rate.
The decision, announced on official news agency MENA, showed an increase in the price of 80 octane gasoline and diesel to 3.65 Egyptian pounds, a 55 percent increase from a previous 2.35 pounds.
The price of 92 octane gasoline also rose, reaching five Egyptian pounds instead of 3.5 pounds, while the price of butane canisters, commonly used in households across the country, was doubled - up from 15 pounds to 30 (about USD 1.65).

Raising fuel prices is bound to boost already surging inflation and fan popular discontent over the austerity policies launched by President Abdel Fattah el-Sissi.
But Egypt's Prime Minister Sherif Ismail told a press conference that the decision was essential and could not be delayed, asserting that it directly supports and improves services provided to citizens while aiming to protect low- income individuals.
"We took part of the value of the subsidies allocated to energy to use it for other subsidies that are important for limited-income and poor individuals," he said.
The government's move comes as part of broader economic reforms taken to meet demands by the International Monetary Fund for a USD 12 billion bailout loan. Other measures that were taken to appease the IMF include the imposition of the value added tax.