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CAIRO, March 31 (Reuters) – Egypt will keep 95 octane gasoline at 7.75 Egyptian pounds (US $ 0.4485) a liter until the second quarter from 2019 because it links for the first time the price of fuel to the international price statement.
Egypt committed to the indexing mechanism as part of the reforms to a $ 12 billion program of the International Monetary Fund to raise energy prices to align with international markets .
A committee decided to keep the price of 95 octane gasoline based on the appreciation of the Egyptian pound against the dollar and world prices for Brent crude, the ministry said.
"There has been a slight rise in inflation and the government has just made the decision to increase the state's minimum wages," said Angus Blair, director of operations. from the investment bank Pharos Holding based in Cairo.
"It may have decided to postpone any increase until inflation declines a bit more, because inflation is on a downward trend in the long run and the employees of the 39, state receive new wages. I would now expect an increase in fuel prices in July or August. "
As part of the deal with the IMF, Egypt has embarked on tough economic reforms that have weighed on the budgets of tens of millions of citizens.
These included the introduction of a value-added tax, a devaluation of the currency and sharp cuts in energy subsidies, including a rise in gas prices of up to 50% last June.
About $ 10 billion has now been disbursed under the agreement, with a final tranche expected after a further review in June.
The oil minister said in January that Egypt would implement the mechanism for automatic price indexing on gasoline at 95 octanes from April.
Last month, the IMF cited these promised changes in a statement last month: "The authorities remain committed to recovering cost recovery for most fuels by mid-2019 and to implement indexing. automatic fuel prices. " Saba and Patrick Werr, edited by Dale Hudson)
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