The government has amended the duties imposed on nitrogen fertilizer exports, setting them at 10% of the shipment’s value instead of $90 per ton, while removing a clause that had limited the duties to three months.
In May 2026, the Ministry of Investment and Foreign Trade imposed duties on exports of all types of nitrogen fertilizers at $90 per ton, or the equivalent in Egyptian pounds, for three months. The new decision, however, does not set a time limit for its validity, meaning it will remain in force until another decision is issued to cancel or amend it.
A source at the ministry, along with Chemical and Fertilizers Export Council chair Khaled Abou El Makarem and his deputy Tarek Zaghloul, attributed the amendment to the sharp decline in global fertilizer prices, which had made the previous duty a burden on manufacturers.
The source, who spoke on the condition of anonymity, informed Al Manassa that the ministry intends to reduce the duty amount by more than half. The revised duty will be approximately $40 per ton, while the global price stands at around $400 per ton.
The source added that the previous decision was issued when fertilizer prices were extremely high, generating large gains for exporters at the expense of the local market, prompting the ministry at the time to impose a $90-per-ton duty.
“The decision preserves the stability of supply in the local market because manufacturers will find that export returns are not much higher than selling their products locally,” the source said, adding that keeping the duties in place without a specific time frame is intended to ensure the product remains available at reasonable prices in the local market.
Abou El Makarem told Al Manassa the decision could benefit exporters, but its impact would depend on global prices, production costs, and overseas demand. He called for regular reviews with industry representatives to ensure it achieves its goals without hurting the competitiveness of Egyptian exports.
According to the decision published in the Official Gazette on June 25, exports of pure ammonium nitrate with a nitrogen concentration greater than 34.2% are exempt from the new export duty. This exemption also applies to shipments exported to production projects located within free zones, provided they fall within the quantities approved by the General Authority for Investment and Free Zones (GAFI).
Zaghloul told Al Manassa that the new decision was made in response to requests for a review of the fixed duty. The updated duties will now be tied to a percentage of the shipment’s value, allowing for greater flexibility in response to fluctuations in global prices.
He explained, however, that the export duty, whether fixed or percentage-based, remains a factor that increases export costs and affects the competitiveness of Egyptian products in foreign markets, noting that the local market cannot absorb all the quantities allocated for export.
Zaghloul said support for the fertilizer industry should be addressed through energy policies and natural gas pricing, as gas is the main production input, explaining that linking gas prices to final product prices may be more effective than imposing duties on exports.
He also stressed the importance of expanding solar, wind, green hydrogen, and green ammonia projects, describing them as strategic solutions to reduce energy costs and strengthen the industry’s future competitiveness.
In April, the government increased natural gas supplies to fertilizer and petrochemical plants by approximately 17% compared to March. At the same time, it raised gas prices by about 21%, bringing them to $8.50 per million British thermal units with the aim of capitalizing on higher export opportunities, despite the rise in local product prices at the time.
Fertilizer prices then soared to 23,000–34,000 Egyptian pounds ($460–680) per ton, which factory owners at the time attributed to higher gas prices stemming from the US–Iran war. However, the introduction of export duties, combined with a decline in global prices, led to a reduction in local prices by about 10,000 pounds ($200) per ton last month.
