Passengers on Cairo’s metro system faced price rises of as much as 30 per cent for tickets on Thursday after the public transport operator raised fares in response to a fuel price hike last week, Reuters has reported.
Egypt’s National Authority for Tunnels, which has overall responsibility for managing Greater Cairo’s public rail transport system, raised metro fares to 8 Egyptian pounds ($0.16) for shorter trips and 15 pounds for longer trips, said local media and passengers.
It’s just a week since the price of fuel products was raised by up to 15 per cent, the second increase since the International Monetary Fund expanded its loan programme by $5 billion in March, in an agreement where the country pledged to rationalise spending, including by lifting fuel subsidies.
The government often defends raising metro fares by citing billions of pounds in losses on the network and increasing operational costs. However, investment in ambitious infrastructure projects is also a major cost.
The country’s annual budget shows that the authority relies heavily on local and external borrowing, amounting to more than 176 billion Egyptian pounds in the fiscal year 2024/25, to fund several transportation mega projects, including the world’s longest monorail.
The IMF on announced on Monday the completion of a review allowing Egypt to withdraw $820 million, stating that efforts to restore macroeconomic stability were beginning to bear fruit. It urged further progress in curbing public investment and the dominance of state-owned enterprises.