In a new effort to subsidize Egypt’s annual budget by fifth percent, the newly elected President Abdel Fattah al-Sisi-led government has announced a slash in its natural gas subsidies to several industries increasing gas prices by 30-75 percent.
The new cut that was announced in the state’s official gazette on Saturday is part of a broad government strategy to cut back subsidies that eat up to a fifth of its annual budget.
This move comes immediately after a decision to reduce car fuel subsidies, raising mainstream fuel prices rose up to 78 percent.
The newly elected President Abdel Fattah al-Sisi government is determined to tackle the subsidies’ burden and cut most within five years.
It therefore means that the Saturday’s new decision would increase the price of natural gas to $8 per one million thermal units for the cement factories and to $7 for the iron, steel, aluminium, copper, ceramic and glass industries.
Last March, Egypt allowed cement companies to use coal for energy to avoid potential public anger over frequent blackouts. Persistent energy crisis started after a 2011 uprising that ousted autocratic president Hosni Mubarak, and which was followed by a wave of violent protests and economic turmoil.
