Egypt denies fuel price hike rumors amid potential IMF-backed adjustments

Egypt's Ministry of Petroleum and Mineral Resources has firmly denied recent rumors suggesting an imminent hike in fuel prices. The ministry clarified that prices circulating online as supposed new rates are inaccurate and lack official backing. It emphasized that the Automatic Pricing Committee, tasked with reviewing fuel prices, has not convened and made no decisions regarding adjustments.

The ministry also addressed concerns about shortages of liquefied petroleum gas (LPG) cylinders in certain regions, asserting that supplies remain stable nationwide. Production, distribution, and cylinder filling operations are proceeding as usual, with no indications of shortages. The ministry urged the public to disregard unverified information and rely solely on official announcements for accurate updates.

An anonymous source with knowledge of the matter revealed that the government is considering another retail fuel price increase, potentially within the current quarter of FY2026/2027. The source cited volatile global oil prices and regional tensions as key drivers for this potential move. The last price hike occurred in March, with increases ranging from 14% to 17%, bringing the total hikes since the IMF-backed economic reforms to up to 1200%.

The source explained that Egypt, as a net importer of refined petroleum products and liquefied natural gas, remains highly vulnerable to international oil price fluctuations. Recent surges in global crude prices, along with rising marine freight and insurance costs due to regional security risks, have increased Egypt's energy import bill and widened the state's subsidy gap. The government must balance fiscal targets with inflationary stability when considering price adjustments.