Egypt Raises Natural Gas Prices for Energy-Intensive Industries

Mintesinot Niggusie

Egypt has increased natural gas prices for several energy-intensive industries effective May, according to a prime ministerial decree published on Sunday.

The move affects industrial users but excludes households, whose supply contracts are already governed by existing pricing formulas, the decree said.

Under the new structure, gas prices will average an increase of about two US dollars per million British thermal units. Cement factories will pay 14 US dollars per million British thermal units, while iron and steel producers, non-nitrogen fertiliser plants and petrochemical facilities will be charged 7.75 US dollars. Other industrial users, including petrochemical operations producing ethane and propane mixtures, will face rates between 6.50 and 6.75 US dollars.

The adjustment comes after the government raised domestic fuel prices by up to 17 percent in March, amid rising global energy costs. Authorities are also continuing efforts to reduce fuel and electricity subsidies under an eight billion US dollars programme agreed with the International Monetary Fund.

Energy costs have been under increasing pressure in recent months. Egypt's energy import bill has more than doubled, while monthly natural gas import costs have nearly tripled since the outbreak of the U.S.-Israeli war with Iran, driven by greater reliance on liquefied natural gas imports and regional suppliers.