Egypt will introduce an automatic price indexation mechanism on 95-octane benzene in April 2019, Minister of Petroleum Tarek El Molla told Reuters.

The new system will allow the price of 95-octane to fluctuate according to international prices, but will cap price changes at 10%.

“This does not mean an increase in price during the second quarter of this year,” El Molla said, adding “the price may fall or rise or stabilize at its current rate.”

The current price of 95-octane is EGP 7.75 per liter, and will be re-priced for the first time at the beginning of April.

Under the new system, a government committee made up of representatives from the finance and petroleum ministries will re-price 95-octane every three months according to changes in Brent prices, current exchange rates and transportation costs.

The move is part of the government’s ongoing IMF-backed liberalization program, which includes a commitment to completely remove fuel subsidies. El Molla recently told Amr Adib on El Hekaya that the government may finish lifting fuel subsidies by 2020.