Back to the complete issue
Monday, 7 September 2020

Manufacturers continue lobbying efforts to cut gas prices ahead of fuel committee meeting

Manufacturers are pushing ahead with an aggressive lobbying campaign that aims to convince the state to cut natural gas prices. Manufacturers surveyed by Hapi Journal estimated the fair price for gas at between USD 2.50–3.50 / mmbtu against the current USD 4.50 / mmbtu

Among the suggestions being offered was a gas pricing committee, similar to the fuel pricing mechanism that reviews domestic oil prices every three months. Magd El Din El Manzalawi, head of the industry committee at the Egyptian Businessmen Association, suggested to Hapi that factories could pay the market price for gas, which would be determined by a committee that meets on a monthly or quarterly basis to review prices and keep them in line with the international markets.

This comes after the heads of export councils last week pushed for lowering gas prices to USD 3.50 / mmbtu at a meeting with Trade and Industry ministry officials, who promised to raise the issue with the cabinet. The government has cut gas prices twice in the past year: once in October and six months later as part of its stimulus measures to protect the economy from the fallout of the covid-19 pandemic.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.