Egypt Increases Household Electricity Prices by Up to 50%

#Finance
Egypt Increases Household Electricity Prices by Up to 50%

Loveworld / 1 hour

August 21, 2024

1 min read

Egypt is set to raise electricity prices for households by up to 50%, as confirmed by two government sources on Monday. This increase, part of a broader effort to phase out subsidies, aligns with an agreement made with the International Monetary Fund (IMF). The adjustment was applied to prepaid meters on Saturday and will take effect for regular meters on October 1.
The price hikes range from 14.45% to 50%. Initially scheduled for earlier this summer, the implementation was postponed due to power shortages exacerbated by high cooling demand. To address these shortages, Egypt had to import approximately $1.18 billion worth of natural gas and mazut fuel oil, as the country relies heavily on natural gas for electricity generation.
The petroleum ministry recently reported receiving five of 21 contracted liquefied natural gas cargoes, totaling 155,000 cubic meters. Prime Minister Mostafa Madbouly announced that power cuts would end for the remainder of the summer.
This move is part of Egypt’s commitment to reduce energy subsidies as part of its expanded $8 billion loan program with the IMF, which was agreed upon in March. The government has previously delayed such increases due to economic pressures.