Egypt to raise energy prices

Cairo - Egypt's Planning Minister Ashraf al-Arabi says the government is about to raise prices on most petroleum products, a move he says will push inflation into double digits.

"We will raise energy prices within days," he said.

Arabi said the increase would apply to gasoline, diesel, heavy fuel oil mazut and gas feedstock for factories but not cooking gas, however electricity prices would go up for the heaviest consumers.

Arabi did not specify the size of the increases but said they would produce a "shock" in the price of other goods and services.

"The government expects to be in the double digits," he said. Urban consumer prices are up 8.2% year-on-year, according to government figures published in May.

Raising energy prices by cutting subsidies could be the first test for new President Abdel Fattah al-Sisi, who must improve state finances and revive an economy battered by more than three years of political turmoil.