Egypt’s Ministry of Petroleum and Mineral Resources announced an emergency adjustment to fuel prices on Tuesday, responding to the sharp rise in global energy costs triggered by the ongoing U.S.-Israeli conflict with Iran.
With Brent crude recently surging toward the $120 per barrel mark amid threats to shipping in the Strait of Hormuz—a corridor for 20% of global oil flow—the ministry put a 3 EGP-increase on all fuel types.
This move aims to protect the state budget and ensure a steady supply of petroleum products.
Under the new pricing structure:
* 95-octane gasoline costs 24 EGP per liter.
* 92-octane gasoline costs 22.25 EGP.
* 80-octane gasoline costs 20.75 EGP.
* Diesel rose costs 20.50 EGP.
The adjustment comes on the tenth day of military strikes that began on 28 February, which have ignited the most severe energy crisis since 2022.
The long statement explained that oil is traded in U.S. dollars, meaning every spike in the barrel price creates a fiscal gap for the state. Officials noted that maintaining previous prices would have drained foreign currency reserves and increased the debts of the Egyptian General Petroleum Corporation.
Despite the hike, Egyptian authorities emphasized that the increases remain moderate compared to the global surge. While Egypt implemented a 14% to 17% increase across fuel grades, other nations have faced far more acute pressures. In the United States, gasoline prices jumped 16% in a single week, with diesel costs rising by more than 80 cents per gallon. Gasoline now costs $3.48 per gallon.
In the U.K., petrol costs have risen by 4.68 pence per liter, pushing the average to 137.51 pence, with diesel climbing to 150.97 pence. Meanwhile, in the Philippines, consumers are facing steep hikes of 7.10 pesos per liter for gasoline, 13.15 pesos for diesel, and 10.50 pesos for kerosene.
Beyond price hikes, some nations have been forced into drastic supply management. India has implemented fuel rationing for its industrial sector, and refineries in China have halted some operations due to a severe shortage of crude.
Australia has begun importing gasoline from the U.S. for the first time since 2023, as it seeks to plug gaps left by the deepening supply chain disruptions across Asia.
By comparison, the Egyptian government is absorbing a significant portion of the burden to mitigate the impact on citizens, particularly in the transport and logistics sectors. The decision also serves to curb black market activity and hoarding, which often emerge when official prices fall significantly behind real market costs. State agencies have intensified inspections at transit hubs and markets to prevent unlawful price gouging.
As global supply chains remain volatile, the government reaffirmed its commitment to maintaining social protection programs for the most vulnerable segments of the population. Authorities indicated that prices may be reviewed downward should regional tensions ease and international oil prices stabilize.
