Egypt Likely to Postpone Gas Price Rises – Official

Egypt’s government is likely to postpone its enforcement of the new fuel prices and impose a price rise only on electricity, diesel and natural gas, a senior government official told Aswat Masriya on Monday.

The current cabinet also plans to increase gas prices linked to energy-intensive local industries, as part of the government’s aim to restructure its energy subsidies.

“The government has not resolved any step in its restructuring plan yet, expect for the increase in natural gas prices, but there is a g tendency in the cabinet to postpone the gasoline price rises. All suggestions are still being discussed,” the senior official said.

Egyptian Prime Minister Ibrahim Mahlab issued a decision in April to set a fixed price for selling natural gas, used domestically and in commercial activity, at 40 piasters per cubic meter for the first 25 cubic meters and 100 piasters for more than 25 meters and less than 50 meters.

According to the decision, effective as of May 2014, using more than 50 cubic meters should cost 150 piasters.

The government also plans to increase electricity prices gradually, starting with higher-consuming entities.

As part of moves to cut subsidy spending, “The gas subsidies will be curbed in graduation over three years until all subsidies are terminated,” said the government official.

He added that the subsidies should have been cut entirely but the economic situation would not allow that now.

Source : Aswat Masriya

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