Cabinet raises natural gas prices

Egypt’s Cabinet decided to raise the prices of natural gas used in households and commercial activities similar to households, according to a decree issued in the country’s official gazette on Sunday.

The prices are set according to the preset segments of consumption.

For the consumption segment of up to 25 cubic meters, the price is set to be LE0.40 per cubic meter, while the price for the 25 to 50 cubic meters segment of consumption is LE1 per cubic meter.

As for the segment of consumption of 50 cubic meters and above, the price will be LE1.50 per cubic meter.

According to the decree, subsidized bread bakeries operating prior to the decree and using natural gas will be exempted from the new price increases.

CEO of the country’s leading natural gas provider Town Gas Company Mohamed Hassanein Radwan told the privately owned Youm7 that the change is meant to bring the price of natural gas closer to that of butane gas, which is the main type of gas used in households in Egypt.

He added that the new prices will not affect consumers, given that 70 percent of natural gas users are in the first consumption segment, which is less than 25 cubic meters per month.

He added that 90 percent of the prices of natural gas are already subsidized. Reuters stated on Monday that the government spends one fifth of its budget on energy subsidies.

Egypt owns one percent of the world’s natural gas reserves.