Egypt has to increase the prices of bread, an essential commodity that is heavily subsidised in one of the world's biggest wheat importers, but it will still "largely be subsidised", Prime Minister Mostafa Madbouly said on Monday.

Egypt will also look to into "balancing" prices of petroleum products by the end of 2025, to ease their cost in the state budget, but gasoline prices will remain subsidised, Madbouly added.

In a letter of intent signed in November 2022, Egypt said it would allow most fuel product prices to rise to bring domestic prices more in line with those in international energy markets.

Egypt raised prices on a wide range of fuel products in its quarterly review in March.

Egypt will start from next week paying 20-25% of arrears due to foreign energy companies, Madbouly also said at a press conference.

Egypt began accumulating arrears to companies and contractors during a long-running foreign currency shortage. The shortage has eased over the past month after the announcement of a record investment deal, a devaluation and an expansion of Egypt's current International Monetary Fund programme.