CAIRO — Egypt’s new government, which was sworn in last Thursday, increased fuel prices by 35.0%-66.6% last Saturday with immediate effect.

The price hike is part of the reform agenda agreed with the International Monetary Fund (IMF) and will help Egypt meet the agreed target for a fiscal deficit of 8.4% of GDP in fiscal 2019, which ends in June 2019, from around 9.8% of GDP in 2018.

The implemented price hikes are credit positive.