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Monday, 21 November 2016

Fertilizer manufacturers threaten to halt production if natural gas price is not reduced

Public and private fertilizer manufacturers have said they would halt production if current natural gas prices are not reduced, Al Borsa reported. Production costs went up by EGP 1,300 to EGP 3,100 per tonne following the EGP float, they say, as the government charges producers for natural gas on USD basis. The manufacturers’ suggested amendments in a meeting with the ministers of agriculture, investment, industry, and finance, and a representative from the Oil Ministry. Suggestions range from the Agriculture Ministry agreeing that it will pay more for the fertilizer it purchases for the domestic market to letting the market set fertilizer rates and while the government provides a cash subsidy to farmers. Also suggested: Setting a fixed EGP to USD rate of 8.88 of the industry.

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