Egypt to Begin Floating Gas Prices in March: Bloomberg

An unnamed senior Egyptian official has revealed to Bloomberg that the government is set to float the price of Grade 95 gasoline this coming March, matching it to international prices, while other - more commonly consumed - grades of gasoline like Grade 92 will be fully liberalised by September 2019 - a controversial decision that is set to further hike prices of transportation services and commodities in Egypt, and one which has long been avoided by previous governments. 

The pricing mechanism for Grade 95 Gasoline will be announced by end of 2018, while a pricing mechanism for other grades of gasoline is set to be announced in June.

Speaking under the condition of anonymity, the official has said that "this grade of gasoline [Grade 95] is one which is no longer subsidised," in revealing details of internal government talks. 

Connecting local prices with international ones comes as part of the government's aim to cut costs by lifting fuel subsidies and the implementation of a comprehensive fuel pricing mechanism is a condition agreed upon as part of the IMF's $12 billion program with Egypt. 

The announcement comes amidst a delay in Egypt receiving the fifth installment of the the IMF fund due to concerns about its ability to fully deliver on the economic reform program, though it is understood that the installment, which was scheduled for December, will now be received in January.

Main Image: ega.org.eg