Egypt raised the price of natural gas for businesses even though energy prices are still unstable

Egypt has increased natural gas prices for various energy-intensive industries beginning in May, as stated in a prime ministerial decree released on Sunday.

The government has increased domestic fuel prices by up to 17% in March due to rising global energy costs and is looking to cut fuel and electricity subsidies as part of a $8 billion program agreed upon with the International Monetary Fund.

The decree increased the gas price by an average of $2, bringing it to $14 per million British thermal units for cement factories and $7.75 for iron and steel, non-nitrogen fertilizers, and petrochemicals, while other industrial activities and petrochemical plants producing ethane and propane mixtures saw prices ranging from $6.50 to $6.75.

The increases do not apply to consumers, as their gas supply contracts already incorporate pricing formulas, according to the decree.

Egypt’s energy import expenses have more than doubled, and monthly costs for natural gas imports have nearly tripled since the onset of the U.S.-Israeli conflict with Iran, leading to a greater dependence on LNG imports and regional suppliers.