Egypt: No changes in natural gas prices for households and businesses
The Egyptian Ministry of Petroleum and Mineral Resources recently announced that there would be no changes in natural gas prices for households and businesses. This statement was made in response to rumors circulating on Sunday that new rates had been introduced.
In a statement, the ministry clarified that the aforementioned rates were approved as part of a previous rate set last September. The aim of this decision was to reduce the gap between prices and production costs.
A professor of petroleum engineering, Ramadan Abul-Ela, explained that natural gas rates for households and businesses were included in the package of measures adopted in September. He also pointed out that the price of a cubic meter of natural gas at the international level is about 10 cents, or about 10 Egyptian pounds.
Abul-Ela compared these international rates with those in Egypt, saying that for the first tranche of consumption up to 30 cubic meters, the rate is 235 piastres, for up to 60 cubic meters, it is 310 piastres, and beyond 60 cubic meters, it is 360 piastres. In comparison, the world price is equivalent to about 10 Egyptian pounds.
The professor went on to note that the world price of gasoline is about $1.32, or about 65 Egyptian pounds, while premium gasoline, Octane 95, is sold for only about 17 Egyptian pounds in Egypt.
Regarding the future, Abul-Ela considered that no new increase in natural gas prices for households is expected to be approved in the near future. He added that political guidelines are in place to take into account the social dimension and avoid any increase in rates.
In summary, it seems that the Egyptian government is maintaining a stable pricing policy for natural gas, emphasizing the need to ensure fair and equitable prices for the country’s citizens and businesses.
It is therefore reassuring to see that measures are being taken to ensure a balance between production costs and the prices charged, while taking into account the country’s economic and social realities.