CAIRO, May 3 – Egypt has increased natural gas prices for energy-intensive industries, as the government moves to contain rising import costs and advance subsidy reforms tied to its programme with the International Monetary Fund.
Under a prime ministerial decree published on Sunday and effective from May, gas prices for industrial users were raised by an average of $2 per million British thermal units. Cement producers will now pay $14, while iron and steel, petrochemicals and non-nitrogen fertiliser manufacturers will pay $7.75.
Other industrial users, including facilities handling ethane and propane mixtures, will face prices between $6.50 and $6.75.
The adjustment follows an earlier increase in domestic fuel prices of up to 17% in March, reflecting mounting pressure on public finances from surging global energy costs. Authorities are seeking to gradually reduce fuel and electricity subsidies as part of an $8 billion IMF-supported reform programme aimed at restoring macroeconomic stability.
The latest price changes apply only to industrial consumers. Household gas contracts remain unaffected, as they are governed by pre-existing pricing formulas.
Egypt’s energy import bill has risen sharply in recent months, with overall costs more than doubling and monthly natural gas import expenses nearly tripling. The increase has been driven by heightened reliance on liquefied natural gas imports and supplies from regional producers, amid disruptions linked to geopolitical tensions in the Middle East.
The government’s pricing adjustments underscore the growing strain on energy-importing economies, as higher global fuel costs feed into domestic inflation and fiscal pressures.
