On Friday, Egypt announced an increase in fuel prices across a broad spectrum of products, as published in the country's official gazette.

This marks the second price adjustment this year, aligning with government efforts to reduce subsidies and address the budget deficit.

The recent adjustments range from a 10.5% to 12.9% increase for various petroleum products, following a significant hike of nearly 15% back in April.

The Ministry of Petroleum confirmed that domestic fuel prices would be held steady for at least one year after this latest change, taking into account local, regional, and global factors.

The ministry further stated that Egypt’s oil sector would maintain full-capacity operations at its refineries while settling arrears with partners and providing incentives to boost production and curtail import expenses.

The new pricing structure sees diesel, one of the most utilized fuels nationwide, increasing by 2 Egyptian pounds ($0.0421) per litre-raising it from 15.50 pounds to 17.50 pounds per litre.

According to a March report by the International Monetary Fund (IMF), Egypt is determined to decrease energy subsidies and align domestic prices with true market costs by December in order to mitigate its substantial current account deficit.

While continuing to subsidize diesel, the government acknowledged that other fuel prices might need to be raised beyond their actual cost to offset these subsidies.

In pursuit of an $8 billion loan from the IMF, Cairo is tasked with cutting down on subsidies for fuel, electricity, and food while simultaneously expanding social safety nets.

The country's central bank indicated that Egypt's current account deficit amounted to $2.2 billion in the second quarter. This period also saw imports of oil products climbing from $400 million last year to $500 million.

Gasoline has not been exempt from these increases; depending on grade, its price has surged up to 12.7%. Specifically, 80 octane gasoline rose to 17.75 pounds per litre; 92 octane reached 19.25 pounds; and 95 octane increased to 21 pounds per litre.