Egypt's government raises fuel prices dramatically

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Associated Press

Posted on July 4, 2014 at 10:04 PM

Updated Friday, Jul 4 at 11:33 PM

CAIRO (AP) — Egypt's state news agency says the government has raised the prices of fuel by up to 78 percent, following on a promise to cut subsidies that eat up nearly a quarter of the government's budget.

The price hikes were in effect as of Friday midnight. The decision follows Cabinet approval this week after it amended the budget to reduce a staggering deficit.

But the new prices were made public only a few hours before the decision was implemented.

Shortly before the price hike, cars lined up outside gas stations in Cairo. The rise was highest for 80 octane gasoline, used mostly by old vehicles that still fill Egyptian streets, the price jumping 78 percent to 22 cents per liter. Diesel fuel has increased 64 percent to 25 cents a liter.

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