Egypt has increased natural gas prices for several energy-intensive industries effective May, according to a prime ministerial decree, as the country faces rising energy import costs. Under the new pricing, gas rates have been raised by an average of USD 2 per mln British thermal units (mmbtu).
Prices for cement producers have been set at USD 14 per mmbtu, while iron and steel, non-nitrogen fertilizers and petrochemical sectors will pay USD 7.75 per mmbtu. Other industrial activities, including petrochemical plants using ethane and propane mixtures, will face prices ranging between USD 6.50 and USD 6.75 per mmbtu.
The decree clarified that the increases apply to industrial users only and do not impact consumers whose contracts are linked to pricing formulas. The move comes as Egypt’s energy import bill has surged, with monthly natural gas import costs nearly tripling due to rising regional tensions and increased reliance on LNG and external supply sources.
The measures align with broader fiscal reforms under an USD 8 bln programme agreed with the International Monetary Fund, which includes reducing fuel and electricity subsidies, improving budget balance and attracting foreign investment.