Skip to comments.Egypt to raise fuel prices by up to 78 percent from midnight
Posted on 07/07/2014 7:05:48 PM PDT by Lorianne
Egypt was set to raise mainstream fuel prices by up to 78 percent from midnight on Friday, an Oil Ministry source told Reuters, in a long-awaited step to cut energy subsidies to ease the burden on its swelling budget deficit.
Food and energy subsidies traditionally eat up a quarter of state spending. The government is cutting subsidies in hopes of reviving an economy battered by more than three years of political turmoil.
Successive governments have failed to curb energy product subsidies, fearing backlash from a public used to cheap fuel.
"The increase will start being implemented by midnight," the source said.
The source said the price of 92 octane gasoline would be 2.60 Egyptian pounds (36 cents) per liter, up 40 percent from its current price of 1.85 pounds, while 80 octane gasoline would rise to 1.60 pounds per liter, up 78 percent.
(Excerpt) Read more at reuters.com ...
Yes, nothing helps a sluggish economy like raising fuel prices 78% Good thinking!
Obama soon to follow
Long term? Better choice.
Short term? Could be (will be difficult.)
Did you notice that the “new” Egyptian government is a dictatorship “freely elected” very recently though?
Free markets are bad?
OTOH, if you measure the price of gasoline as a percent of income(pain at the pump price), Egypt has high gasoline prices and this price increase will probably put them up at the top of that list.
But, what is my price?
Egypt has rioted when subsidies for food have been raised in the past.
Fuel up 78%?
Gee, that should help everything.Egypt is a basket case waiting to explode.
Good luck after that price rise.