Mostafa Madbouly, Prime Minister of Egypt, said on Tuesday that the government was compelled to increase fuel prices to ensure domestic production continues and the national economy remains stable.
Speaking during a cabinet meeting, Madbouly explained that authorities had to choose between keeping fuel prices unchanged which would have placed a significant financial burden on the state or increasing them to protect industries and businesses from the economic effects of the Iran–Israel conflict.
Despite the adjustment, he noted that the government is still covering “substantial costs.”
“We took these decisions during exceptional circumstances,” he said, adding that the measures could be reviewed once the conflict ends, while stressing that Egypt is now better prepared to handle the crisis than it was during earlier challenges.
Fuel prices in Egypt were raised by as much as 17 percent on Tuesday after the war involving Iran pushed global oil prices higher.
The Egyptian Ministry of Petroleum and Mineral Resources said the price of diesel widely used for public transportation rose by more than 17 percent.
Meanwhile, the price of 92-octane gasoline increased by 15 percent, while 95-octane gasoline went up by 14 percent.
The conflict involving Iran has placed considerable pressure on Egypt’s economy.
As the most populous country in the Arab world, Egypt relies heavily on imported fuel to meet its energy needs.
The Egyptian pound also weakened to a record low, trading at more than 52 pounds against the United States dollar on Monday.
In response to the crisis, the government introduced several measures aimed at easing the impact of the war, including cutting back on official international travel and enforcing stricter fuel consumption across various sectors.
