The Egyptian government is preparing to gradually eliminate natural gas subsidies for the industrial sector as part of a broad reform aimed at reducing the fiscal burden of energy support programs.
The report was published by Asharq Bloomberg, citing a government source.
According to the source, the reform will introduce a quarterly review of gas prices, based on market fluctuations and a pricing formula tied to the average cost of locally produced and imported gas. The final price will also include an additional margin of one US dollar per million British thermal units (MMBtu).
Since September 16, Egypt has already increased industrial gas tariffs, now set according to activity type: $12 per MMBtu for the cement industry, $5.75 for non-nitrogen fertilizer, iron and steel producers, $4.5 for nitrogen-based fertilizers, and $4.75 for other industrial sectors.
Meanwhile, power plants continue to pay $4 per MMBtu, and brick kilns are charged 210 Egyptian pounds per unit.
Several companies — including Al Masria Lel Asmeda (Egyptian Fertilizers), MOPCO, EPIC, and Methanex — have been exempted from the latest price hike applied to October billing. These firms have special contracts with EGAS (Egyptian Natural Gas Holding Company) linking gas prices to global urea, ammonia, and methanol prices.
The Ministry of Petroleum and Mineral Resources clarified that new industrial plants will not benefit from any subsidies, marking a further step in Egypt’s energy pricing reforms, amid mounting fiscal pressures.
Official figures show that fuel subsidy costs are expected to reach EGP 154.5 billion (about $3 billion) for fiscal year 2024–2025, up from EGP 119.3 billion the previous year.
Prime Minister Mostafa Madbouly’s government reiterated its goal of fully aligning fuel and gas prices with international market levels by the end of 2025, a move designed to narrow the budget deficit and attract greater investment in the energy sector.
MK/te/lb/as/APA