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.