Egypt increases fuel prices following devaluation

An Egyptian worker fills a customers tank as cars queue at a petrol station in the capital Cairo on November 4, 2016. AFP PHOTO / KHALED DESOUKI

Fuel prices rose dramatically in Egypt on Friday after the central bank floated the currency to address a dollar crunch that has threatened to cause some imports to grind to a halt.

The oil ministry announced the increases in prices of subsidised petroleum products late Thursday as part of broader financial reforms.

The government of President Abdel Fattah al-Sisi is rolling out an austerity programme and seeking billions in support from abroad in order to meet conditions for a $12 billion loan from the International Monetary Fund..

Lower grade petrol would go up from Friday by nearly 50 percent to 2.35 pounds a litre while higher octane fuel would increase around one third to 3.5 pounds per litre, according to an oil ministry statement.