The Egyptian government will start applying the prime minister's decision about the increase in prices of natural gas and electricity consumption next month, sources told Al-Masry Al-Youm.
Other sources from the petroleum ministry added that the increase in natural gas prices for home consumers comes as part of a plan to rationalize consumption and reduce subsidies, which was LE128 billion last year and is expected to reach LE140 billion by the end of this fiscal year.
The ministry, according to the source, has several scenarios to reduce the subsidy, including increasing natural gas prices for homes while considering the various brackets of consumption. Most homes fall within the lowest bracket of monthly consumption, which is between 25 and 50 square meters.
The new price will be 40 piasters per square meter up to 25 square meters, 100 piasters per square meter up to 50 square meters and LE1.50 thereafter.
The increase in prices for gasoline octane 80 will be LE185 instead of 85 piasters. Gasoline octane 92 will increase from LE185 to LE285. The proposals also include increasing diesel oil prices from LE1.1 to LE2, in order to reduce consumption, especially that it uses up more than 50 percent of the annual subsidy allocations amounting to more than LE60 billion annually.
Governmental sources also said that electricity prices will go up for upper class consumers.
Edited translation from Al-Masry Al-Youm
