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Wednesday, 22 January 2020

Egypt to cut gas prices for factories in coming fiscal year -sources

Egypt to cut gas prices for factories in coming fiscal year -sources: The government is studying several proposals that could cut gas prices for factories by another USD 1.5-2 per mn British thermal units, with the new prices expected to come into force at the beginning of the new fiscal year in July, two sources from the Federation of Egyptian Chambers of Commerce told Al Shorouk. One source who attended meetings between industry representatives and the government said that they seek to bring gas prices down to the USD 3.5/mmBtu global average, while another said that Finance Minister Mohamed Maait pledged to cut prices by USD 1-2/mmBtu. Factories in Egypt currently pay on average USD 5.5/mmBtu.

Background: The cabinet last year lowered gas prices for cement, metallurgy, and ceramics manufacturers, heeding the call of lobbyists who have been pushing for changes for years. The cement industry is now paying USD 6/mmBtu, while metallurgy and ceramics firms pay USD 5.5/mmBtu. The government also set up a committee to review the prices every six months. The cabinet then said it is also looking to lower gas prices for petrochemical factories below USD 7/mmBtu.

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