Egyptians woke up on October 18, 2025, to the news of yet another fuel price hike—the second such increase this year—sending ripples through the nation’s economy and daily life. According to the country’s official gazette and reports from the Associated Press, fuel prices rose between 10.5% and 12.9%, following a nearly 15% jump in April. The government moved quickly to assure the public that, after this adjustment, domestic fuel prices would be frozen for at least a year, a move meant to offer some predictability amid a period of economic turbulence.
This latest round of price increases is part of a broader strategy to phase out energy subsidies and align domestic prices with global costs by December 2025, a key recommendation from the International Monetary Fund (IMF). The IMF, which recently expanded its bailout package for Egypt to $8 billion, has urged the government to trim fuel, electricity, and food subsidies while simultaneously expanding social protection schemes. The IMF’s fourth review of Egypt’s economic reform program was completed in March, unlocking a $1.2 billion disbursement to help steady the nation’s finances.
For everyday Egyptians, however, the news stung. Diesel—one of the country’s most widely used fuels, crucial for public transport and goods delivery—rose by 2 Egyptian pounds, reaching 17.50 pounds per liter, up from 15.50. Petrol prices climbed as well: 80 octane now costs 17.75 pounds per liter, 92 octane is at 19.25, and the premium 95 octane stands at 21 pounds per liter.
"The government said fuel prices will remain fixed in the local market with no further increases for at least one year," the Associated Press reported, quoting the official statement posted on Facebook. This assurance, while welcome to some, did little to placate concerns about the immediate impact on household budgets. Egypt’s annual urban consumer price inflation hit 11.7% in September 2025, according to the Central Bank—a slight improvement over previous months, but still a heavy burden for many families.
As fuel prices rose, so too did the cost of getting around Egypt’s bustling capital. Cairo authorities responded by raising public and mass transportation fares by up to 3 Egyptian pounds. The fare for a regular public bus operated by the Cairo Transport Authority increased by 2 EGP, now costing 12 EGP instead of 10. Air-conditioned bus fares jumped to 23 EGP, a 3 EGP hike. Private sector-operated minibuses saw similar increases: standard fares rose from 16 to 18 EGP, and air-conditioned minibuses now charge 22 EGP, up from 19. Taxi meters also adjusted, with the base fare climbing to 13.5 EGP.
All told, transportation fares in Cairo spiked by an estimated 15% in the wake of the fuel price hike. For the millions of Egyptians who rely on public and semi-public transport for their daily commutes, this was a tough pill to swallow. Social media filled with a chorus of mixed reactions. Some public figures acknowledged the economic necessity of the move, pointing to the country’s fiscal challenges and the pressure to meet IMF conditions. Others, particularly those representing lower-income communities, criticized the impact on working-class residents already struggling with the rising cost of living.
“Raising prices was meant to reduce the gap between the selling prices of petroleum products and their high production and import costs,” the government explained during a previous price hike in late 2024. This rationale, echoed in the latest round, underscores Egypt’s ongoing struggle to balance fiscal responsibility with social stability.
Behind the scenes, Egypt’s oil sector is working overtime. Officials have pledged to keep refineries running at full capacity, settle debts to foreign partners, and introduce new incentives to boost local production and minimize import costs. These efforts are aimed at stabilizing the market, reducing the country’s reliance on costly imports, and ultimately narrowing the gap between what Egyptians pay at the pump and what it costs to bring that fuel to market.
The stakes are high. Egypt’s current account deficit reached $2.2 billion in the second quarter of 2025, with petroleum imports alone rising to $500 million—up from $400 million the previous year, according to central bank data. The country’s finances have been battered by a series of shocks over the past several years: government austerity measures, the lingering effects of the COVID-19 pandemic, the Russia-Ukraine war, and most recently, the Israel-Hamas conflict in Gaza. Houthi attacks on shipping routes through the Red Sea have also slashed Suez Canal revenues, one of Egypt’s most vital sources of foreign currency.
In an effort to cushion the blow for ordinary citizens, the government raised the minimum monthly wage for both public and private sector workers earlier this year, setting it at 7,000 pounds (about $138), up from 6,000 pounds ($118.58). It’s a move that’s been met with cautious optimism, though many say it’s not enough to keep pace with the rising cost of essentials.
For now, the government’s message is one of cautious reassurance. "The petroleum sector will continue running refineries at full capacity and provide incentives to its partners to boost production, reduce import expenses, and stabilize costs," the official statement read. The hope is that, by keeping fuel prices fixed for the next year and accelerating domestic production, Egypt can weather the storm and lay the groundwork for a more sustainable future.
Still, the road ahead is far from easy. As the IMF and other international observers keep a close watch, Egyptian officials must walk a tightrope: pushing forward with tough fiscal reforms while trying to shield the most vulnerable from the worst effects. The ripple effects of the latest fuel price hike—on transportation, inflation, and everyday life—will be felt across the country for months to come.
For millions of Egyptians, the question remains: how much further can their budgets stretch? With fuel and transportation costs on the rise and inflation still high, many are bracing for a challenging year ahead. The government’s promise of no further fuel price increases until late 2026 offers a measure of stability, but for now, the squeeze on household finances is all too real.
As Egypt pushes forward with its economic reforms, the coming months will test the resilience of its people and the resolve of its leaders. The outcome will shape not just the country’s fiscal health, but the daily lives of its citizens in ways both large and small.
