Egypt is set to increase electricity prices for households by up to 50%, as confirmed by two government sources. The country is gradually removing subsidies under an agreement with the International Monetary Fund. This latest price hike was implemented on Saturday for prepaid meter systems and will take effect for regular meters on 1 October.
The increases range from 14.45% to 50%, according to a source at the electricity ministry. The hike was initially scheduled for earlier this summer but was postponed due to power shortages caused by high cooling demands.
To maintain grid stability, Egypt resorted to load-shedding and needed to import approximately $1.18 billion worth of natural gas and mazut fuel oil to mitigate the long-standing power cuts. The nation primarily generates electricity through natural gas combustion.
#Egypt hikes electricity prices for households by up to 50 percent, sources say. https://t.co/Rfk8m1CuEn pic.twitter.com/FgUMx0wU5Z
— Arab News (@arabnews) August 20, 2024
Last month, the petroleum ministry reported that Egypt had received five shipments totalling 155,000 cubic metres of liquefied natural gas. This is part of the 21 cargoes contracted. Prime Minister Mostafa Madbouly later declared the end of power cuts for the rest of the summer.
In a bid to expand its $8 billion loan programme with the IMF, Egypt has pledged to reduce energy subsidies. However, electricity price increases had been delayed multiple times in recent years due to economic challenges.
Frequently Asked Questions
Here are some common questions asked about this news
Why is Egypt increasing electricity prices?
Egypt is gradually phasing out subsidies as part of an agreement with the IMF.
When did the new electricity prices take effect?
The new prices took effect on prepaid meters on Saturday and will apply to regular meters on Oct. 1.
How much are electricity prices increasing in Egypt?
The increases range from 14.45% to 50%.
What caused the delay in the electricity price hike?
The hike was delayed due to power shortages and high cooling demand.
How is Egypt addressing its power shortages?
Egypt resorted to load-shedding and needed to import $1.18 billion worth of fuel to end power cuts.
