The government's decision to raise natural gas prices for home users will save the state LE1 billion annually, said Egypt Gas CEO Faisal Abul Ezz.
In a phone interview with CBC, Abul Ezz said the decision will lessen the gap between local prices and international ones, from 7 percent to 20 percent of world rates.
He said that prices will be reviewed annually in order to adapt to world rates.
He said, however, that the raise will not affect subsidized LE8 butane cylinders.
Egypt is leaning towards lessening energy subsidies for the rich and for factories to relieve the burden on the state budget and the economy, which had been negatively impacted by two uprisings since 2011.
Energy subsidies represent at least 10 percent of GDP.
Edited translation from Al-Masry Al-Youm
