Egypt raises natural gas prices for industries amid global energy volatility

Sunday 03 May 2026 - 14:00

Egypt has increased natural gas prices for several industrial sectors as part of broader efforts to respond to rising global energy costs and reduce public spending on subsidies. The decision, announced through a government decree, took effect in May and primarily targets energy-intensive industries.

The price adjustments affect key sectors such as cement, steel, and petrochemicals. Gas prices for cement producers have risen significantly, while industries like iron and steel, as well as fertilizer and petrochemical producers, are also facing higher costs. Other industrial activities are subject to moderate increases, depending on their level of consumption and production needs.

This move follows earlier fuel price hikes implemented in March, when domestic fuel costs rose by notable margins. The government has been under pressure to address the financial burden created by subsidies, especially as part of an economic reform program supported by the International Monetary Fund. The agreement includes measures aimed at improving fiscal stability and reducing reliance on state-funded energy support.

Officials emphasized that the latest increase applies only to industrial users and does not directly impact household consumers, whose pricing structures are governed by separate contractual formulas.

Egypt’s energy challenges have intensified in recent years, with import costs rising sharply. The country has increasingly relied on liquefied natural gas imports and regional suppliers to meet domestic demand. Global geopolitical tensions and market fluctuations have further contributed to the surge in energy expenses, putting additional strain on public finances.

The government’s latest decision reflects a balancing act between maintaining industrial productivity and managing economic pressures in a volatile global energy environment.