Prime Minister Moustafa Madbouli said on Wednesday 13/7/2022 that the decision taken earlier in the day to raise oil prices is the result of recent changes in oil prices globally and the US dollar exchange rate.
The decision is meant to maintain the country’s oil resources and alleviate the burden on the state budget, enabling it to face global inflationary pressures, Madbouli said.
The premier explained that the Egyptian state has not raised the diesel price for more than 30 months in order not to affect the living conditions of citizens.
He further blamed the Russian-Ukrainian conflict for the recent changes in oil prices globally.
Oil barrel price during the recent period, especially after the Russian invasion of Ukraine, exceeded the ceiling of $125 per barrel, which has become costing the budget to finance the import of about $15 billion, compared to about $ 7.5 billion in the past,” he explained.
The state’s decision to raise diesel prices aimed at reducing the gap between its production cost and selling price to EGP 3.75 instead of the current EGP 4.25 per liter, he added.
The Egyptian state was keen to provide the necessary funds to meet the needs of various sectors despite successive global challenges, the premier noted.
He also reviewed measures taken by the government to improve the living conditions of Egyptians, including the allocation of 192.4 billion pounds for the education sector, 90 billion pounds for the “Decent Life” initiative, 180 billion pounds for the insurance and pension fund and 95 billion pounds for food commodities.
The prime minister also cast light on a decision taken earlier to increase salaries of public servants and pensions as of April 2022 instead of July 2022 to alleviate the burden on citizens.
Egypt postponed raising electricity prices for a period of six months, until the end of 2022, in implementation of President Abdel Fattah El Sisi’s directives, according to Madbouli.
Source: State Information Service Egypt