Egypt will start applying the new fuel pricing indexation mechanism to all petroleum products starting from Q4 2019, a ministry official told Reuters.

According to the ministry official, the government will still support butane cylinders, in addition to the petroleum products provided to bakeries and power stations, without applying the new fuel pricing indexation mechanism to them.

The mechanism, which was introduced on 95-octane in April 2019, will see the government re-price fuel by as much as 10% each quarter, bringing the prices in line with international markets.

The announcement was made after the Egyptian Cabinet declared the new fuel prices with increases that range from 16% to 30%, which came into effect on Friday July 5.