Fuel price hikes anger Egyptians

People in Egypt are angered by the government’s move to raise fuel prices by up to 78 percent as part of its austerity measures to tackle the country’s budget deficit.

In the Suez Canal city of Ismailia, Egyptian taxi drivers blocked roads after the hikes came into effect on Saturday. Police fired tear gas to disperse them.

In Suez and Ismailia, minibus drivers staged demonstrations asking for a rise in fares to compensate for fuel costs.

People rushed to gas stations in several cities, with reports indicating that clashes erupted several times between frustrated motorists and gas station employees.

The government increased the price of 92-octane gasoline from 1.85 Egyptian pounds a liter to 2.60 pounds, up 40 percent, and 80-octane gasoline also rose from 0.90 pounds to 1.6 pounds a liter, up 78 percent. Diesel fuel price also increased to 1.80 pounds per liter, up 63 percent; and natural gas price soared by 175 percent to 1.10 pounds per cubic meter.

The hikes came as part of the government’s plan to cut energy subsidies to revive the country’s economy.

Prime Minister Ibrahim Mehleb defended the cuts in subsidies at a press conference on Saturday, saying they were needed to fix the country’s economy.

“The decisions were taken after delicate studies. How can I achieve social justice while I am subsidizing for the rich at the expense of the poor?… We are at war, we are fighting poverty and ignorance” Mehleb said, adding that the money saved from the cuts would be spent in the education and health sectors.

The Egyptian government has already said that energy and food subsidies consume nearly a quarter of the budget and need to be slashed.

According to the latest figures, Egypt’s budget deficit reached 9.3 percent of its gross domestic product (GDP) in the first eleven months of the current fiscal year.