×
×
Project Insights

Cairo refuses to cut industrial gas and power prices

The Egyptian government promised to cut gas and power tariffs, but industrial users are still waiting for prices to fall The Egyptian government promised to cut gas and power tariffs, but industrial users are still waiting for prices to fall.
By Rachel Williamson 8 September 2016 Middle East & Africa / Global Markets 0 21845
Egypt’s Tourah cement plant. Industry leaders say they will pass on increased electricity prices. (Suez Cement)

The Egyptian government’s refusal to offer lower industrial gas and electricity prices despite an improving supply situation is causing pain in some sectors of the economy. 

A source working for one of Egypt’s major steel companies, who wished to remain anonymous, said he had been hoping for some relief from high gas prices to give the sector a boost. 

Gas supplies have stabilised over the past 18 months and the government has claimed that a gas surplus is on the horizon, raising hopes among industrial end-users that...