Anger at Egypt petrol pumps after steep price rise
06 May 2008 14:29:56 GMT Source: Reuters
By Cynthia Johnston CAIRO, May 6 (Reuters) - For Munib Iskander, the venerable driver of a black and white Cairo cab, it was almost more than he could bear to wake up to news of a government decision that raised petrol prices 35 percent overnight. Egypt's parliament -- in a lightning vote on Monday -- approved steep increases in fuel and cigarette prices and vehicle licence fees to cover the cost of public sector pay rises that President Hosni Mubarak proposed last week. "I don't know how I will work. I just heard this morning. I worked a little and came to fill up. People want to pay the same fares but the petrol costs me more," said Iskander, 60, as he reluctantly filled his tank. The increase, which an opposition Muslim Brotherhood politician called a "conspiracy against the poor", lifted the price of 90 octane petrol by 35 percent to 1.75 Egyptian pounds ($0.33) a litre, effectively cutting a long-term energy subsidy. Egyptians said many taxi drivers -- whose fares are set by custom or negotiation -- had raised rates, and some minibus drivers were refusing to work, demanding authorities let them raise fares by around 25 piastres for local journeys. "Taxi drivers raised their fares this morning. I paid 3 pounds instead of 2 as was normal to get to my workplace. I can't walk long on my feet," said Hamdan Abdullah, a 55-year-old office worker in Ismailia, a town on the Suez Canal. Some minibus drivers, not allowed to raise their rates, cut longer routes in half -- effectively doubling prices by forcing customers to pay twice for what was previously one ride, witnesses said. Prime Minister Ahmed Nazif had promised on Monday that the price rises would not push up public transport fares. NOT ALL BENEFIT FROM WAGE RISE Mubarak, facing growing public discontent over food price rises, last week offered public sector employees a 30 percent increase in basic salaries, provided the government could find the money without increasing the budget deficit. The state-owned newspaper Gomhuria hailed the decision to raise fuel prices to finance the move in a banner headline, saying: "The priority is for the poor in the new budget." Egypt has wanted to raise petrol prices for years, saying the energy subsidy benefits mainly rich people with large cars. Monday's move was expected to generate 12 billion pounds. But many members of the Egyptian working poor said they would bear the brunt of the fuel price increase without getting the benefit of Mubarak's wage rise. "Not all people are government employees. I don't work for the government and I won't benefit from the wage increase," said Magdy Mohamed, a 48-year-old carpenter, as he filled up an old red Peugeot. Sami Abbas, 34, a gas station attendant, said: "This will affect the tips a lot. People used to give me a pound or two, but now they give nothing." Economists said the government measures would add to high inflation, which rose to 14.4 percent in the year to March, the highest rate for three years. The prospect of further rises in the price of basic goods compounded public anger. "This increase, I can't even speak about it. Truly I can't get words out. The government doing this is unfair, unfair, unfair," said taxi driver Mohamed Said as he filled up his car. He said he hoped customers would pay more but was not directly charging higher fares. "I leave it to their conscience. They pay me and they see the circumstances, so some pay a little more," he said. (Additional reporting by Yusri Mohamed in Ismailia, Mohamed Yusuf in Rafah and Mohamed Abdellah in Cairo; writing by Cynthia Johnston; editing by Tim Pearce)
An injured Ukrainian tourist talks on his mobile phone in Abu Rdees hospital, about 250 km (155 miles) southeast of Cairo, May 1, 2008. The tourist was injured by a bus ...
