The global oil markets witnessed turbulence during the third quarter of 2019, which may support the stability of fuel prices in Egypt, in line with the actual application of the automatic pricing mechanism.
The Egyptian government is due to announce new fuel prices today, Tuesday.
Economic experts predicted that fuel prices will stabilize in conjunction with the sharp fall in global fuel prices during the third quarter of 2019, as well as the strength of the Egyptian pound against the dollar, reaching LE 17.546, the highest level since March 2017.
In the same context, Beltone Investment Banking, an affiliate of Beltone Financial Holding, expected that the Egyptian government is going to stabilize prices for gasoline, diesel, and other fuel products this month.
“Oil and gas prices in Egypt will not be increased in the near future,” Petroleum Ministry’s Spokesperson Hamdy Abdel Aziz said in televised remarks to Sada El Balad TV show “Ala Masaolity” (On my responsibility).
He revealed that the concerned committee at the Petroleum Ministry is used to supervising the oil’s price every three months in comparison to the global market’s price.
It’s worthy to note that, Egypt’s Ministry of Petroleum applied the automatic pricing mechanism at the end of December 2018.
Last April, the ministry decided to settle the sale price of 95-octane fuel in the local market for three months to remain at EGP 7.75 per liter. The automatic pricing mechanism takes into account world oil prices.
The application of the automatic pricing mechanism was part of the measures the government agreed upon with the International Monetary Fund (IMF) to implement as part of Egypt’s economic reform program.
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