Egypt will keep 95-octane petrol at 7.75 Egyptian pounds ($0.4485) per litre through the second quarter of 2019 as it links the cost to international fuel prices for the first time, the petroleum ministry said in a statement. Egypt had committed to the indexation mechanism as part of reforms tied to a $12 billion International Monetary Fund programme and designed to increase energy prices to match those on international markets. A committee decided to hold 95-octane petrol's price based on the Egyptian pound's appreciation against the dollar and global prices of Brent crude, the ministry said.
"There has been an uptick in inflation and the government has just issued a decision to increase the minimum state salaries," said Angus Blair, chief operating officer at Cairo-based investment bank Pharos Holding. "It may have decided to defer any increase until inflation comes off a little further, as inflation is on a longer-term downtrend, and the state employees are paid the new salaries. I would now expect fuel price increases in July or August."
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