EFIA to push gov’t to float natural gas price for all industry sectors
EFIA lobbies for new natgas pricing mechanism: The Egyptian Federation of Investors Associations (EFIA) will ask the Finance Ministry to impose a new mechanism that would determine natural gas prices for manufacturers akin to the floating customs exchange rate, EFIA’s head of tax and customs Sobhi Nasr told Youm7. Comparing it to the recent exchange rate float decision, Nasr said under the new mechanism, gas prices would be reviewed every month and would apply to all local industries. The EFIA is preparing to hold a meeting to discuss the government’s decision last week to reduce gas prices for three industries.
Background: Responding to pressure from manufacturers, the government last week lowered the price of natural gas for the cement, metallurgy, and ceramics industries, and said it would review it every six months. The price for cement factories was slashed to USD 6 / mmBtu, down from USD 8. Metallurgy and ceramic companies, meanwhile, saw their rates drop to USD 5.5 from USD 7. The move is designed to offset the recent surge in operating costs, and boost output and exports.