News sources are anticipating more moves in the economic reform program, which includes the removal of subsidies in 2018, resulting in price hikes in everything from transportation to cigarettes and electricity.
The government has been committed to the economic reform program since being granted the IMF (International Monetary Fund) loan in 2016, and adopting the policies that came along with it; one of which was the complete removal of subsidies. We have seen price hikes in gasoline, cigarettes, electricity and even metro tickets these past years.
Expected Increase in Metro Ticket Prices
The first on this list is metro tickets prices - which according to Hisham Arafat, the Minister of Transportation – will increase at the start of the fiscal year of 2018/2019. The new tickets will be priced according to the number of stations a person is going through; Arafat told Masrawy in an interview that it will not be more than 5LE per ticket.
Health insurance law bound to increase each cigarette pack 0.75LE
Cigarettes on the other hand, are expected to witness a 0.75LE increase on each pack with the application of a new health insurance law according to Masrawy’s report, along with an expected increase in the value added tax.
Electricity subsidies removal continues
As for electricity, the government has been increasing its prices each year since 2014, and is expected that it will be continuing with its plans during 2018, with electricity subsidies set to be completely removed by 2022.
Fuel subsidies removal affects transportation costs again
In accordance with the economic reform program, the government is going to decrease the subsidies allocated for fuel with the start of the new fiscal year, according to Masrawy - diesel and petrol will be on the top of the list. Consequently, this will reflect on local transportation costs, with microbuses, taxis, and buses increasing their fares. Also, when the new insurance law is activated there will be an increase of 1LE on the fare of transportation vehicles that take highways.
By Adel M. Fakhry