The Egyptian government has decided to raise subsidized fuel prices by as much as 47 percent.
The subsidy cut is the last step in Egypt securing a $12 billion loan from the International Monetary Fund (IMF).
This comes at the heels of Thursday's announcement that the central bank would begin floating the pound, devaluing the currency by nearly 50%.
Stocks have since soared, reaching an eight-year peak.
Cars lined up at petrol stations on Thursday evening, anticipating the pending hikes.
"How am I going to afford this?" Ahmed Adel, an engineer, told Bloomberg. “I’m single with no children, I can’t imagine how are people with families going to live with food and fuel prices reaching those levels?”
The central bank also announced that it raised its two benchmark overnight interest rates by 3 percentage points. Additionally, it said that the country's priority list for imports would be done away with and monetary financing of the budget deficit would be phased out in the coming months.
Egypt's ongoing economic crisis has forced the government to turn to the International Monetary Fund (IMF) for a $12 billion loan.
IMF Managing Director Christine Lagarde told Egyptian officials that they needed to address the country's exchange rate issues and curb energy subsidies before the loan could be made.
Lagarde also said that Egypt needed to raise its international bilateral support to $6 billion.
Earlier this week, Bloomberg reported that Egypt and China made a currency swap deal valued at $2.7 billion, moving the country closer to the $6 billion goal. Previously, Egypt secured $3 billion in support from Saudi Arabia and the UAE as well as funds from G7 countries.
For average citizens, however, the reforms may no trickle down fast enough. Essential items – such as sugar – have already been disappearing from shelves as prices in the country continue to rise.
