Egypt plans to end fuel subsidies within three years, and is also aiming to hike fuel prices by 65 percent in the 2016/17 fiscal year, Reuters news agency reports.
The northeastern country has been struggling to revive its economy after the 2011 uprising that had devastating effects on tourism and foreign investments.
Egypt has reached a staff level agreement with the International Monetary Fund for a $12 billion three-year loan programme which is subject to final approval by the IMF executive committee.
The cost of petroleum subsidies fell to 55 billion Egyptian pounds ($6.2 billion) in 2015/16 from 71.5 billion pounds the previous year.
Egypt is now aiming to lower subsidies for petroleum products to about 35 billion pounds this financial year.