Egypt’s Automatic Pricing Committee for fuel products belatedly announced on 23 July that gasoline prices would rise by E£0.25/liter (1.6 US cents/liter) for Q3. This marks the second consecutive quarter that each of the country’s three key grades of gasoline have seen their prices raised by this amount.
In both instances the increases have been far less than those suggested by the country’s ‘automatic pricing mechanism’, introduced from mid-2019 (MEES, 12 July 2019). This supposedly sees prices adjusted at the end of each quarter based on movements in the Egyptian pound against the dollar and in international Brent crude prices. With the Egyptian currency virtually unchanged since the start of the year, the rise in Brent prices has been the key variable. Average Brent prices of $69/B for Q2 were up 35% on Q1. (CONTINUED - 708 WORDS)