According to a text of the proposal obtained by reporters, the price of diesel - used by most public transport - will rise by 46 per cent, as will heating oil.
Natural gas will go up by 58 per cent and cigarettes by 10 per cent.
Petrol will go up by between 40 to 50 per cent, except for the most commonly used 80 octane petrol which will remain subsidised.
Parliament was in session on Monday to discuss the proposal which is aimed at covering the 12.5-billion pound (S$3.13 billion) cost of a rise in public sector salaries promised by President Hosni Mubarak.
MPs were expected to approve the proposal and announce it later the same day, with the new prices to take effect on July 1, a parliamentary source said.
Mr Mubarak vowed last Wednesday to raise public sector salaries by 30 per cent to combat rises in food prices.
In recent months, Egypt has seen a number of strikes and demonstrations against low salaries and price rises that have seen the cost of cereals leap by nearly 50 per cent over the past year.
The price of cooking oil rose by 45.2 per cent, while foodstuffs generally rose by an average of 23.5 per cent.
Egypt is also in the grip of a serious bread crisis brought on by a combination of the rising cost of wheat on world markets and sky-rocketing inflation.
The price of bread has increased fivefold in private bakeries, creating panic in state-run bakeries that the staple may run out.
A day of nationwide action called for April 6 saw riots erupt in the Nile Delta industrial city of Mahalla in which three people died after demonstrators pulled down posters of Mr Mubarak. -- AFP