The government is considering raising natural gas prices for energy-intensive industries by more than $1 per million British thermal units starting in September, a senior Finance Ministry source familiar with gas pricing told Al Manassa.
In early May, the government also raised natural gas prices for industrial and energy-intensive sectors by an average of $2 per million British thermal units, bringing the price to $14 for cement plants, $7.75 for iron and steel, non-nitrogen fertilizer and petrochemical industries, and $6.75 for other industrial activities.
The senior Finance Ministry source, who requested anonymity, said the gas import bill has risen sharply in recent months, while the cost of securing supplies has doubled as global prices climbed amid the fallout from the US war on Iran. That has prompted the government to reconsider gas prices for factories and some services provided to the public, including electricity and gas, to narrow the gap between import costs and domestic selling prices.
In March, Prime Minister Mostafa Madbouly said Egypt’s monthly natural gas import bill had nearly tripled, rising from $560 million to $1.65 billion because of the US-Israeli war on Iran.
The government is closely monitoring developments in global energy markets and their impact on the cost of securing the country’s natural gas needs, the source said, adding that any new price increases would be introduced gradually.
The Finance Ministry and other relevant agencies are also working on measures to limit the impact of higher gas prices on industrial activity, while continuing to support priority sectors, particularly industries tied to essential goods, to maintain production and stabilize domestic markets, the source said.
The prospect of increased gas prices for industry comes as Egypt’s nationwide annual inflation rate rose to 13% in July, according to data released Monday by the Central Agency for Public Mobilization and Statistics, marking the first increase since March.
