Egypt To Put Oil Products On Global Price Of Brent Crude, Exchange Rate

CAIRO, Egypt Egyptian Prime Minister, Mostafa Madbouly, said that, a special committee has been established, to follow up the pricing formula of petroleum products on a quarterly basis.

The selling price of these products on the local market will depend on the average global price of Brent crude and the exchange rate, except for butane-gas cylinders and petroleum products used by the state’s electricity sector and bakeries, Madbouly was quoted as saying.

The committee will further provide recommendations and proposals, to ensure the proper implementation of the mechanism and address any problems or gaps that might arise when it is executed.

A day earlier, Egypt hiked fuel prices by up to 30 percent, to help meet the terms of an International Monetary Fund (IMF) loan deal and push ahead the economic reform plans.

This is the fourth time the government has increased fuel prices, since austerity measures were announced in 2015.

Egypt’s reform plans, including full local currency flotation, have been encouraged by a 12-billion-U.S.-dollar loan from IMF, the last third of which was approved in May.