The Egyptian government on Saturday (July 21st) said it will increase the price of natural gas for home and commercial use by up to 75%, setting three price tiers based on consumption, Ahram Online reported Wednesday.
The first tier is for consumption of up to 30 cubic metres, for which the price has been hiked from 1 Egyptian pound to 1.75 pounds per cubic metre.
The second tier is for consumption between 30 and 60 cubic metres, costing 2.5 pounds instead of 1.75 pounds, while the third tier is for consumption between 60 and 300 cubic metres, hiked to 3 pounds instead of 2.25 pounds.
The increases are effective as of August.
The increases come a month after the government raised fuel prices for the fourth time since 2014 by up to 50% as part of a $12 billion loan deal from the International Monetary Fund signed in late 2016.
The decision is expected to result in price increases for some commodities as some manufacturers rely on natural gas to run their factories.
However, the impact of the gas price hikes on prices and inflation will likely be limited, especially during the summer season when demand is weak, senior economist at Prime Holding Mona Bedeir said.
The impact could feed into inflation later in the year when demand picks up.
"In general, the impact of natural gas price hikes will be limited compared to the increases in fuel," Bedeir said.
Egypt is raising the prices of electricity, natural gas, water and is cutting subsidies. The question now is: what will the disabled and low-income people do? They've been facing a relentless flood of price hikes.
Reply1 Comment(s)