Rédaction Africa Links 24 with Egypt Independent
Published on 2024-03-13 08:32:08
The head of the Petroleum Products Division at the Federation of Egyptian Chambers of Commerce, Hassan Nasr, recently announced that both local and global indicators in the oil market suggest a potential increase in gasoline and diesel prices in Egypt. In an interview with the Cairo 24 news website, Nasr stated that fuel prices in Egypt could see a surge of approximately 10 percent, which translates to a one-pound increase in gasoline prices.
Nasr highlighted that the Central Bank of Egypt has taken steps to liberalize the exchange rate of the Egyptian pound, leading to a decline in its value. This decline may result in higher costs for importing fuel, coupled with the overall increase in global energy prices.
The government’s pricing committee is expected to issue its decision in March. The committee’s last meeting in November saw an increase in gasoline prices across all types while keeping diesel prices stable. The prices were set as follows: Octane 80 at LE 10 per liter, Octane 92 at LE 11.5 per liter, and Octane 95 at LE 12.5 per liter.
The committee responsible for monitoring and implementing pricing mechanisms for petroleum products on a quarterly basis made these decisions after evaluating both the global and local market trends. They also analyzed various global, local, and regional factors that impact fuel prices.
Nasr explained that the cost of providing these products in the local market is heavily influenced by two key factors – the global price of a barrel of Brent crude and the exchange rate of the dollar against the pound. Additionally, there are other fixed expenses and costs that play a role in determining the final prices of gasoline and diesel.
The recent surge in crude oil prices, reaching a nearly 14-year high, has been driven by geopolitical factors such as the U.S. and U.K. decision to ban Russian oil imports in response to Russia’s invasion of Ukraine. This geopolitical tension has caused disruptions in the global oil market, leading to uncertainty and volatility in energy prices worldwide.
As Egypt navigates these challenges, stakeholders in the oil market are closely monitoring developments to anticipate and address any potential impact on domestic fuel prices. The government’s pricing committee will play a crucial role in ensuring a balanced approach that considers both domestic economic conditions and global market trends when setting fuel prices in the country.
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