Egyptian Prime Minister Mostafa Madbouly said – in a press conference today, Monday – that Egypt is forced to move bread prices, “but it will remain heavily subsidized.”
Bread is a basic commodity that enjoys great support in Egypt, one of the largest wheat importers in the world.
Madbouly added that Egypt will study “balancing” the prices of fuel products by the end of 2025, in an effort to reduce the financial burden on the government budget, but gasoline prices will remain subsidized.
In a letter of intent signed in November 2022, Egypt said it would raise the prices of most fuel products to bring them closer to prices in international energy markets.
Egypt raised the prices of a wide range of fuel products in its quarterly review last March.
Madbouly said, in a press conference, that Egypt will begin paying between 20 and 25 percent of the arrears owed to foreign energy companies next week.
Arrears owed to companies and contractors began to accumulate in Egypt due to a prolonged shortage of foreign currency.
This shortage decreased last month after the announcement of a record investment deal with the UAE, the devaluation of the currency and the expansion of the current International Monetary Fund program with Egypt.
