The increase is likely to drive up prices of other goods and services across Egypt. However, the price of diesel, the most commonly used fuel for transporting people and goods in Egypt, remains unchanged.

The country has been plagued by continuous price increases in recent months, with annual inflation reaching 26.5% in January, the highest in five years, according to official figures. Food prices in some urban areas rose to about 48% that month.

Egypt’s economy has been hit hard by years of government austerity, the coronavirus pandemic and the fallout from the war in Ukraine. The country is the world’s largest wheat importer, with most imports traditionally coming from Eastern Europe.

To curb its economic turmoil, Egypt received a $3 billion bailout loan from the International Monetary Fund last December. In return, President Abdel-Fattah el-Sissi’s government has committed to several IMF-led economic reforms, including a free-floating exchange rate and a reduction in fuel subsidies.

The deal unlocks an additional $14 billion in possible financing for Egypt.

The rise in fuel costs is likely to exacerbate economic pressures on Egypt’s lower-income households, most of whom have long depended on government subsidies for basic goods such as fuel and bread. According to official figures, nearly 30% of Egyptians live in poverty.