The Egyptian government raised the selling price of a cylinder of liquid cooking gas (butane) for individuals by 50% to 150 pounds, and for the commercial sector by the same percentage, but its price reached 300 pounds, while it raised the price of a ton of diesel directed to power stations by 160% to 6,500 pounds per ton, according to a document seen by Asharq, and confirmed by two informed persons who refused to publish their names.
“The price of natural gas for power plants will increase from $3.25 to $4 per million thermal units,” an official who spoke to Bloomberg on condition of anonymity said, noting that the Ministry of Petroleum’s dues to the Electricity Ministry amounted to 165 billion pounds at the end of last August.
Egypt raised fuel prices for the second time this year last July, by rates ranging between 10% and 15%, and the government expected at the time that this increase would lead to saving 36 billion pounds in the state budget during the fiscal year 2024-2025.
The most populous Arab country has returned to being a net importer of natural gas this year, having bought more than 50 cargoes since the start of the year.
Egypt has recently resorted to reducing subsidies on many basic services and goods since the beginning of this year, as the prices of bread were increased, and the prices of subway tickets, which is the most popular means of transportation in the capital, Cairo, which is inhabited by more than 20 million people. Following that, it was announced that the prices of landline internet and mobile phone services would be raised, then an increase in the prices of electricity, and building materials, specifically cement and iron.
Source: Bloomberg
#Egypts #gains #raising #gas #cylinder #prices
2024-09-19 10:54:10
– What are the reasons behind Egypt’s recent fuel price hike?
Table of Contents
Egypt Raises Fuel Prices: A 50% Hike for Cooking Gas and 160% for Diesel
Introduction
In a move that is set to have far-reaching implications for the Egyptian economy, the government has announced a substantial increase in fuel prices, affecting both individuals and the commercial sector. The prices of liquid cooking gas (butane) and diesel have been hiked by 50% and 160%, respectively, while the price of natural gas for power plants will also see a significant rise. This article delves into the details of these price hikes, exploring the potential impact on the Egyptian economy and the reasoning behind these decisions.
The Price Hike: Cooking Gas and Diesel
According to a document seen by Asharq and confirmed by two informed sources, the selling price of a cylinder of liquid cooking gas (butane) for individuals has been increased by 50% to 150 pounds. The commercial sector will also face a similar price hike, with the price of a cylinder rising to 300 pounds. This significant increase is expected to have a ripple effect on the economy, affecting both households and businesses.
In addition to the cooking gas price hike, the government has also raised the price of a ton of diesel directed to power stations by 160% to 6,500 pounds per ton. This substantial increase is likely to have a notable impact on the cost of electricity generation, which could lead to higher electricity prices for consumers.
Natural Gas Price Increase
An official who spoke to Bloomberg on condition of anonymity revealed that the price of natural gas for power plants will increase from $3.25 to $4 per million thermal units. This price hike is significant, as it will affect the cost of electricity generation and ultimately impact the entire energy sector.
Reasons Behind the Price Hike
The Egyptian government has been struggling to balance its budget, and the fuel price hikes are seen as a measure to curb energy subsidies. The Ministry of Petroleum’s dues to the Electricity Ministry have reportedly reached 165 billion pounds at the end of last August, highlighting the need for the government to take drastic measures to reduce its energy-related expenditure.
Earlier this year, Egypt raised fuel prices by rates ranging between 10% and 15%, expecting to save 36 billion pounds in the state budget during the fiscal year 2024-2025. The current price hike is seen as a continuation of this effort to reduce energy subsidies and improve the country’s fiscal health.
Egypt’s Natural Gas Situation
Interestingly, Egypt has returned to being a net importer of natural gas this year, having bought more than 50 cargoes since the start of the year. This shift in Egypt’s natural gas landscape highlights the country’s increasing reliance on imported energy sources, which has prompted the government to take measures to reduce its energy costs.
Impact on the Economy
The fuel price hikes are likely to have far-reaching implications for the Egyptian economy. Households will face higher costs for essential energy sources, which could lead to a decrease in consumer spending and a potential increase in inflation. Businesses, particularly those in the industrial sector, will also be affected by the higher costs of diesel and natural gas, which could lead to higher production costs and potentially impact their competitiveness.
Conclusion
The Egyptian government’s decision to raise fuel prices is a significant move aimed at curbing energy subsidies and improving the country’s fiscal health. While the price hikes may lead to short-term pain for consumers and businesses, they are seen as a necessary step towards a more sustainable energy sector. As Egypt continues to grapple with its energy challenges, it remains to be seen how these price hikes will impact the broader economy and the country’s development prospects.
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Fuel prices (7 instances)
Egypt (6 instances)
Natural gas (5 instances)
Cooking gas (3 instances)
Diesel (3 instances)
Energy sector (2 instances)
Energy subsidies (2 instances)
Economy (2 instances)
* Government (2 instances)
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Egypt raises fuel prices by 50% for cooking gas and 160% for diesel, with natural gas prices also set to increase. This article explores the reasons behind the price hike and its potential impact on the Egyptian economy.
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Egypt Raises Fuel Prices: A 50% Hike for Cooking Gas and 160% for Diesel
– What are the reasons behind Egypt’s recent fuel price hike?
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Egypt Raises Fuel Prices: A 50% Hike for Cooking Gas and 160% for Diesel
Introduction
In a move set to have far-reaching implications for the Egyptian economy, the government has announced a substantial increase in fuel prices, affecting both individuals and the commercial sector. The prices of liquid cooking gas (butane) and diesel have been hiked by 50% and 160%, respectively, while the price of natural gas for power plants will also see a significant rise. This article delves into the details of these price hikes, exploring the potential impact on the Egyptian economy and the reasoning behind these decisions.
The Price Hike: Cooking Gas and Diesel
According to a document seen by Asharq and confirmed by two informed sources, the selling price of a cylinder of liquid cooking gas (butane) for individuals has been increased by 50% to 150 pounds. The commercial sector will also face a similar price hike, with the price of a cylinder rising to 300 pounds. This significant increase is expected to have a ripple effect on the economy, affecting both households and businesses.
In addition to the price hike, the government has also increased the price of a ton of diesel directed to power stations by 160% to 6,500 pounds per ton. This move is likely to have a significant impact on the energy sector, potentially leading to increased costs for power generation and distribution.
Natural Gas Price Hike
The price of natural gas for power plants will also increase from $3.25 to $4 per million thermal units, according to an official who spoke to Bloomberg on condition of anonymity. This price hike is likely to have a significant impact on the energy sector, potentially leading to increased costs for power generation and distribution.
Reasons Behind the Price Hike
The Egyptian government has been gradually reducing subsidies on various essential services and goods since the beginning of the year. The recent fuel price hike is part of this effort to reduce the country’s budget deficit and dependence on foreign aid. The government expects to save 36 billion pounds in the state budget during the fiscal year 2024-2025 as a result of this price hike.
Egypt has also become a net importer of natural gas this year, having bought more than 50 cargoes since the start of the year. The country’s energy needs have been increasing, making it difficult for the government to maintain the previous prices of fuel.
Impact on the Economy
The fuel price hike is likely to have a significant impact on the Egyptian economy, particularly on low-income households and small businesses. The increased cost of transportation and energy is expected to lead to higher inflation rates, potentially affecting the purchasing power of households.
The price hike may also lead to increased costs for businesses, potentially affecting their profitability and competitiveness. However, the government expects the increased revenue from the price hike to help reduce the country’s budget deficit and improve the overall economy in the long run.
Conclusion
The recent fuel price hike in Egypt is a significant move that is likely to have far-reaching implications for the country’s economy. While the price hike may lead to increased costs for households and businesses in the short term, the government expects it to help reduce the country’s budget deficit and dependence on foreign aid in the long run. As the government continues to implement its economic reform program, it remains to be seen how the fuel price hike will affect the Egyptian economy in the coming months.
Keywords: Egypt, fuel price hike, cooking gas, diesel, natural gas, energy sector, economy, budget deficit, foreign aid.
Meta Description: The Egyptian government has announced a significant increase in fuel prices, affecting both individuals and the commercial sector. This article explores the details of the price hike and its potential impact on the Egyptian economy.
Header Tags:
H1: Egypt Raises Fuel Prices: A 50% Hike for Cooking Gas and 160% for Diesel
H2: The Price Hike: Cooking Gas and Diesel
H2: Natural Gas Price Hike
H2: Reasons Behind the Price Hike
H2: Impact on the Economy
H2: Conclusion
