Egypt raises electricity prices, cuts subsidies

Egypt is further cutting electricity subsidies, raising average prices by around a quarter, Electricity Minister Mohammed Shaker announced Tuesday (June 12th).

The subsidy cuts are the latest step in an electricity prices restructuring plan launched in 2014, with the new prices taking effect from July 1st, AFP reported.

They were decided "taking into serious account the low-income", Shaker said.

The lowest consumers of electricity will have their subsidies cut the least, while the higher the consumption, the larger the cuts, he added.

"Up to 1,000 kilowatts (per month), there is a subsidy," while the subsidy would be abolished for higher usage, he said.

Prices for domestic consumers will rise by an average 24.8%, while factories will see their electricity bills rise by almost 42%, he said.

The cut in subsidies is part of a reform programme that prompted the International Monetary Fund to approve a three-year, $12-billion loan in November 2016.

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Egypt raises electricity prices and cuts down on subsidies. The rest will come! Every week, Egyptians are surprised with price hikes in a commodity or service. This comment doesn’t have a [malicious] purpose or incite, but it is the bitter reality which the Egyptian people live. May God help you, o, Egypt!

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