Egypt hikes fuel prices as a result of Iran war

Egypt increased fuel prices on Tuesday following the spike in the cost of oil and gas as a result of supply disruptions stemming from the US-Israel and Iran war.

The increases ranged from 14 to 17 percent across various petroleum products, marking the first increase this year. Last year Cairo implemented two price rises: 15 percent in April, followed by another 11 to 13 percent in October.

Egypt’s government had announced a freeze on domestic fuel prices for at least one year following the October price adjustment, citing local and global economic conditions.

Egyptian prime minister Mostafa Madbouly said in March that the government may have to take “exceptional measures” if global crude prices rise due to the conflict.

“The exceptional measures are being taken, keeping energy security and local market stability as top priority,” the cabinet said in a statement.

Diesel prices are now EGP20.50 ($0.39) per litre, up from EGP17.50 in October.

The price of 95-octane gasoline has gone up from EGP21 to EGP24 per litre, 92-octane gasoline from EGP19.25 to EGP22.25 and 80-octane gasoline from EGP17.75 to EGP20.75.

The ministry said the government will try to boost local production, increase exploration and develop oil and gas resources by encouraging investment partners to expand their activities to help reduce the import bill.

The conflict between the US and Israel and Iran has entered its second week, but US president Donald Trump signalled on Monday that the war could end soon.

In February a joint Egyptian-Emirati venture announced plans to invest nearly $516 million during 2026-27 to increase its crude production by nearly 15 percent.

Egypt approved a plan to drill 100 new exploratory oil and gas wells during 2026 as part of a five-year investment plan.

The country’s extractable crude oil and gas deposits are estimated by the Arab Energy Organization at 3.3 billion barrels and 2.1 trillion cubic metres.