Ahmed Kamel – Egypt Daily News
Egypt has raised natural gas prices for several energy-intensive industries starting May, according to a prime ministerial decree published on Sunday, as the country continues to adjust its energy pricing framework amid volatile global markets and ongoing fiscal reforms.
The decision comes as part of broader economic measures linked to subsidy reduction commitments under Egypt’s agreement with the International Monetary Fund (IMF).
Higher Costs for Heavy Industry
Under the new pricing structure, natural gas rates have been increased for key industrial sectors, including cement, steel, fertilisers, and petrochemicals.
According to the decree, prices were adjusted as follows:
- Cement factories: around $14 per million British thermal units (mmBtu)
- Iron and steel, non-nitrogen fertilisers, and petrochemicals: $7.75 per mmBtu
- Other industrial activities and petrochemical plants using ethane and propane mixtures: between $6.50 and $6.75 per mmBtu
The government said the adjustments reflect average increases of around $2 per unit.
Consumers Not Affected
The decree clarified that household consumers are not included in the price changes, as residential gas contracts are governed by separate pricing formulas.
Energy Subsidy Reform Continues
Egypt has been gradually reducing energy subsidies under an $8 billion IMF-supported programme aimed at strengthening fiscal stability and improving market efficiency.
In March, domestic fuel prices were raised by up to 17%, part of a wider policy shift to align local energy prices more closely with international levels.
Rising Import Costs and Energy Pressure
The government’s decision comes amid a sharp rise in Egypt’s energy import bill, which has reportedly more than doubled in recent periods.
Monthly natural gas import costs have also increased significantly due to growing reliance on liquefied natural gas (LNG) imports and regional suppliers, as global energy markets remain volatile.
Industrial Impact
The new pricing is expected to increase production costs for energy-intensive sectors, particularly cement and steel, which are heavily dependent on natural gas as a key input.
Analysts say the move reflects Egypt’s effort to balance fiscal pressures with maintaining industrial competitiveness in a challenging global energy environment.
