Prime Minister Sherif Ismail denied the government's intention to increase ticket prices for public transport.
Speaking at a press conference on Thursday, Ismail said it was necessary to increase fuel prices in order to avoid a nightmare scenario.
Upgrading electricity and railway sectors requires a total of 137 billion pounds, the prime minister said.
The government has allocated about 90 billion pounds in the new budget to fund social protection programs, he added.
Egypt's total subsidy is expected to reach 333 billion pounds in the 2017-2018 fiscal year compared to 270 billion pounds in the 2016/2017 fiscal year, the premier noted.
Ismail revealed the government's plan to decrease the budget deficit to 9.1 percent from the current 10.8 percent.
He said the government also seeks to reduce public debt to 95 percent of the gross domestic product in the new budget.
The single butane gas cylinder costs the state 115 pounds, while the citizen pays only 15 pounds to get it, so it necessary to increase its price to 30 pounds, the prime minister added.
The cabinet had approved an increase in fuel prices as of Thursday morning.
The price of 80-octane fuel rose from 2.35 to 3.65 pounds per liter, while the price of 92-octane gasoline rose from 3.5 to 5 pounds per liter.
As for diesel, its price increased from 2.35 to 3.65 pounds per liter.
The price of cooking butane gas cylinder also increased from 15 to 30 pounds.

Source: MENA