Egypt's Sisi slashes fuel subsidies

Egypt has drastically raised its fuel prices to tackle a bloated subsidy system.

Egypt has drastically raised fuel prices to tackle a bloated subsidy system in a potentially unpopular move that might blow back on newly elected President Abdel Fattah al-Sisi.

With the country's economy battered by three years of unrest, successive governments have argued that subsidies that allowed Egyptians to buy petrol at some of the world's cheapest prices must be lifted.

Ex-army chief Sisi, elected by a landslide in May, has advocated austerity to narrow the budget deficit, and a severe law and order platform to rein in Islamist supporters of ousted president Mohamed Morsi.

Morsi himself baulked at implementing the cuts to avoid stoking unrest but the military ousted the divisive leader anyway after millions took to the streets demanding his resignation.

With the main Islamist opposition decimated, Sisi appears set on leveraging his popularity to ram through politically risky measures.

The government raised the price of 92 octane petrol from 1.85 Egyptian pounds ($A.39) a litre to 2.60 pounds, and 80 octane petrol from 0.90 pounds to 1.6 pounds a litre, the official MENA news agency reported on Saturday.

The price of diesel was raised from 1.1 pounds to 1.8.

The increase took effect at midnight Friday.


Share

2 min read

Published

Updated



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world