Egypt introduces price index for fuel linked to oil prices

January 8, 2019 GMT

CAIRO (AP) — Egypt has created a new automatic price index mechanism for 95-octane gasoline as part of a reform program aimed at reviving the country’s economy.

The official Gazette has published a decision to establish a technical committee to review the pricing mechanism on 95-octane gasoline every three months this year. The move aims to link gasoline prices to global oil prices.

The state-run al-Ahram daily newspaper quoted Oil Ministry spokesman Hamdy Abdel-Aziz as saying that the new mechanism will start in April and that 92-octane and 80-octane gasoline will not be affected.

The move came as part of an economic reform program aimed at qualifying for a $12 billion bailout loan from the IMF, which Egypt secured in 2016.

Egypt raised fuel prices by up to 50 percent since 2014.