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Egypt raises drinking water prices by 46.5%

UNITED STATES (OBSERVATORY) –┬áThe official newspaper in Egypt on Saturday published a decree signed by President Abdel Fattah al-Sisi, which includes measures to increase the prices of drinking water and sanitation services up to 46.5%, the second increase in less than a year.

Egypt has implemented extensive economic reforms under an IMF loan program worth $ 12 billion for a three-year period in 2016.

Liberalized its currency exchange rate and cut subsidies to attract foreign investment after its decline in the wake of the 2011 uprising.

Saturday’s decision included a 12 percent increase in sanitation fees, and authorities raised the price of drinking water and sanitation by as much as 50 percent in August 2017.

The increase in the prices of Cairo subway trains last month has raised rare manifestations of popular anger, while there is still more cuts in subsidies on the road, including fuel and electricity subsidies.

Government officials say spending cuts will help revive the economy, with subsidies accounting for about 25 percent of state spending, but policies including cut subsidies and higher taxes have driven prices up.