The decline of the Egyptian pound against the US dollar during the fourth quarter of 2022 may lead to a new increase in gasoline prices in Egypt during the next few days.
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Egypt is preparing for a new increase in prices after the rise of the dollar
A government official expected in press statements, saying: “Petroleum prices are awaiting a new increase during the review of the next automatic pricing committee, which is held 4 times a year, as a result of changing exchange rates. And in the event that petroleum prices continue at the current levels locally, an increase in value is expected.” The petroleum subsidy bill exceeded 100 billion pounds in the current fiscal year 2022-2023.
Subsidies for petroleum products in Egypt jumped to 31 billion pounds during the first quarter of the fiscal year 2022-2023, due to the rise in global oil prices, at a time when the government was aiming for it to stand at 28 billion pounds during the entire current fiscal year that ends next June.
The fuel subsidy bill in the final account of Egypt’s budget 2021-2022 amounted to 59 billion pounds, an increase of 212% over the fiscal year 2020-2021, which recorded 18.9 billion pounds.
The pricing committee, which was established in July 2019, relies in its decision on the average prices of Brent crude in the global market, the exchange rate of the dollar against the pound for the period from October to December 2022, and taking into account the inflation rate in the transport sector, with reference to The maximum price increase is 10% at each price revision.
The average price of Brent crude rose in the fourth quarter of 2022 by about 1.3% to $82.16 a barrel at the end of December, while the price of yesterday, Wednesday, fell to $77.84, but this may not be conducive to stabilizing prices, especially with the decline in the price of the Egyptian pound against the dollar by about 26.5%. During the fourth quarter of 2022, and more than 66% from the beginning of 2022 until today.
Egypt approved the price of a barrel of oil at $80 in the budget for the current fiscal year 2022-2023, from $75 a barrel a year ago. Egypt annually consumes about 12 million tons of diesel and about 6.7 million tons of gasoline, according to the latest data of the Central Agency for Public Mobilization and Statistics for the fiscal year 2019-2020.
It is worth mentioning that The economic crisis in Egypt The Egyptians are suffering greatly from the economic crisis that their country is going through, while it is suffering under the burden of debt.