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Wednesday, 27 November 2019

Government to review natgas, electricity prices for industries within days

Gov’t to review natgas, electricity prices for industries “within days”: The committee formed last month to revise the price at which the government sells natural gas and electricity to factories is set to meet within the next few days, Public Enterprises Minister Hisham Tawfik said, according to Al Shorouk. Prices were cut by 25% in October for cement producers, while metallurgy and ceramics manufacturers also saw their rates drop to USD 5.5 from USD 7. A new pricing scheme that would lower the price of natural gas sold to petrochemical factories is also on the way.

Parliament and industry are lobbying for even lower prices: Parliamentary sources said last week that the House Industrial Committee will push for government to cut natural gas prices for steel, aluminum, copper, ceramics, and porcelain factories. Other sources from the iron and steel and ceramics industries said they want to see deeper cuts than recommended by the committee.

Background: The government set up in October a committee to revise every six months the prices at which it sells gas to the industrial sector following repeated calls by manufacturers for lower prices.

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