Egypt to raise fuel, diesel prices amid public anger

0 Comments | AFP, May, 2008

CAIRO (AFP) — Egypt's ruling party on Monday proposed a set of tax and duty increases including on fuel, diesel and cigarettes amid public anger at price hikes and the state of the economy.

According to a text of the proposal obtained by AFP, the price of diesel -- used by most public transport -- will rise by 46 percent, as will heating oil.

Natural gas will go up by 58 percent and cigarettes by 10 percent.

Petrol will go up by between 40 to 50 percent, except for the most commonly used 80 octane petrol which will remain subsidised.

Parliament was in session on Monday to discuss the proposal which is aimed at covering the 12.5-billion pound (2.3-billion dollar) cost of a rise in public sector salaries promised by President Hosni Mubarak.

MPs...