Egypt "Will Raise Oil Prices by the End of Next Year... Condition for Receiving IMF Bailout"

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Egypt has agreed to cut fuel subsidies as a condition for receiving bailout funds from the International Monetary Fund (IMF).

According to major foreign media and Yonhap News on the 25th (local time), the Egyptian government reduced fuel subsidies as a condition for receiving bailout funds from the IMF. Due to this cut, the domestic gasoline price (based on octane 80) rose to 12.25 Egyptian pounds per liter (approximately 350 KRW).

The most widely used diesel price increased by 15%, from 10 Egyptian pounds (about 286 KRW) to 11.50 Egyptian pounds (329 KRW).

This fuel price hike by the Egyptian government is the second since the IMF expanded the bailout amount from 3 billion USD (about 4.1 trillion KRW) to 8 billion USD (about 11 trillion KRW) in March.

At that time, Egypt promised to cut fuel subsidies as part of the agreement to improve government finances. The IMF is scheduled to conduct a third review related to the bailout expansion on the 29th.

According to foreign media, after completing the review, the IMF is expected to immediately disburse 820 million USD (1.1 trillion KRW) to Egypt.

Since the end of 2019, the Egyptian economy has been hit by the COVID-19 pandemic, the 2022 Ukraine war, and the outbreak of the 2023 Gaza conflict, and has not been able to escape the foreign exchange crisis.