Egypt’s state-run natural gas holding company, EGAS, is considering between two and three more hikes in household gas prices by 2027 to bring prices in line with actual production costs, according to a source familiar with the company’s pricing strategy.
The source, who spoke to Al Manassa on condition of anonymity, said EGAS has adopted a plan to gradually apply the true cost of household gas by no later than 2027.
EGAS raised household gas prices with the June billing cycle, which will be collected starting next month. Rates increased by 1 to 2 Egyptian pounds per cubic meter, depending on the consumption bracket.
The source said the price hikes across different consumption brackets ranged between 25% and 40%, with higher-consumption households paying more.
In April, the government’s fuel automatic pricing committee increased household butane cylinder prices from 150 to 200 pounds—a 33.3% increase—and commercial cylinders from 300 to 400 pounds.
The source attributed the latest hike in household gas prices to rising supply costs, prompting the Ministry of Petroleum to shift part of the burden onto end users. “The Ministry of Petroleum cannot bear the cost increase alone,” the source added.
The source also noted that the price of gas from Egypt’s foreign partners has surged by 25% to 40% in the current fiscal year, driven by the government’s efforts to incentivize their participation in domestic exploration and production programs. Ultimately, this has raised the overall cost of supplying gas to Egypt’s oil and gas sector.
Declining gas production—now below 4.5 billion cubic feet per day—has forced the ministry to turn to more expensive alternatives to meet domestic demand, particularly for household supply, which cannot be reduced like industrial usage.
On May 19, the government halved natural gas supplies to fertilizer and methanol plants nationwide for 15 days, after Israel notified Cairo of planned maintenance on one of its export pipelines for the same period, according to Asharq Business with Bloomberg.
The source said the Ministry of Petroleum has faced mounting financial pressure due to the need to charter floating storage and regasification units to receive imported LNG, regasify it, and feed it into Egypt’s national grid.
Last Wednesday, Prime Minister Mostafa Madbouly announced that the government aims to secure four additional regasification ships in the coming period to prevent further power cuts.
Experts warn that the cost of renting these vessels will weigh on Egypt’s external balances but emphasize that they have become essential due to falling domestic output and unreliable Israeli gas deliveries.
Egypt’s natural gas production has been declining since 2023, leaving the country unable to meet its daily consumption needs, estimated at around 6 billion cubic feet per day. This shortfall has triggered multiple interruptions to power generation and key industrial activities.
