Egypt's Ministry of Petroleum is proposing the introduction of a grade of petroleum for the local market, the state-run Al-Ahram newspaper reported on Monday.
The new, more efficient Octane 85 will replace the current Octane 80 and be priced at around LE1.25 ($0.3) per litre.
Egypt is one of the few remaining countries in the world to still produce the lower quality grade. A litre of Octane 80 currently sells at LE0.9 ($0.15) per litre.
Petroleum prices are highly subsidised in Egypt to ease financial pressures on low-earning citizens. Such fuel receives LE6.3 billion in annual subsidies, around 6 per cent of the total LE99 million allocation to overall energy subsidies in the 2011/12 budget.
Egypt’s annual petrol production stood at 54 million tonnes in 2011. Nationwide consumption was 53 million tonnes for the same period, state data shows.
Octane 90 sells for LE1.75 ($0.29) and Octane 92 for LE1.85 ($0.3). The highest quality Octane 95 costs LE2.75 ($0.45). (ahramonline)