Fuel price hikes claim first victim as taxi driver murdered in Egypt

Fuel price hikes claim first victim as taxi driver murdered in Egypt
A quarrel over a taxi fare turned deadly on Sunday after fuel price hikes sparked uncertainty and unleashed fury in austerity-stricken Egypt
2 min read
18 June, 2018
The new austerity measures are being enforced by security at petrol stations [Getty]
A taxi driver was stabbed to death by a passenger in the Egyptian town of Mansoura on Sunday evening after a row over the fare turned deadly following unpopular fuel price hikes initiated by President Abdelfattah al-Sisi last week.

The price hikes were announced without specifying how much transport rates should be increased in each governate, which sparked the dispute between the pair.

Egypt's interior ministry made a statement confirming the taxi driver's murder, saying the perpetrator fled the scene and was yet to be arrested.

According to investigators, the victim, identified as "Mustafa A.H." was stopped by passenger named "Khalid A.A." who asked him to take him from New Talkha station to the Sandoub neighbourhood of Mansoura, after which they fought over a fare difference of 30 Egyptian pounds ($1.68).

The quarrel quickly escalated and Khalid stabbed Mustafa, who reportedly died immediately.

The Interior Ministry announced in a statement on Saturday steep increases in fuel and cooking gas prices as part of the country's fiscal reforms and austerity measures designed to overhaul the country's ailing economy.

The new prices went into effect on Saturday morning, the Ministry of Oil said in a statement.

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Authorities have simultaneously ramped up security at petrol stations across the country amid fears that the unpopular measures will spark waves of protest, such as when dozens of people demonstrated against an increase in fares for the Cairo metro in May.

"Security services have increased their presence at petrol stations and bus stations to prevent any violations taking place," a police statement said on Sunday.

A security source told state-run media that "anyone caught disregarding the price hikes will have legal action taken against them".

This is the third time the government has increased fuel prices since austerity measures were announced in late 2015. The move is likely to send prices soaring further.

Egypt has imposed harsh austerity measures and started phasing out subsidies on many goods and services since November 2016, when the International Monetary Fund approved a three-year $12 billion loan.

The tough austerity measures have won praise from economists and business leaders but have come as a heavy blow to poor and middle-class Egyptians, with further angry outbursts, such as the Mansoura stabbing, likely to continue.