Forbes StaffEgypt hikes electricity prices for households by up to 50%.
According to the latest reports, Egypt has hiked electricity prices by up to 50%. This hike was due to take effect earlier in the summer but was delayed as the country grappled with power shortages. Two government sources told reporters on Monday that the country is gradually phasing out subsidies as part of an agreement with the International Monetary Fund.
What did the source at the electricity ministry say?
A source at the electricity ministry told Reuters that the new hike in electricity prices was applied on Saturday for the prepaid meter system and would be applied to regular meters on October 1. The source also said that the raises range from 14.45% to 50%. The latest hike was supposed to take effect this summer but was delayed as the country grappled with power shortages, with higher cooling demand driving up consumption.
Egypt resorted to load-shedding.
Egypt has resorted to load-shedding to keep the grid functioning, saying it needed to import around $1.18 billion worth of natural gas and mazut fuel oil to end the long-running cuts. Also, Egypt generates most of its electricity from burning natural gas.
Last month, the petroleum ministry said that Egypt received five cargoes containing 155,000 cubic meters of liquefied natural gas out of 21 cargoes that it had contracted for. PM Mostafa Madbouly later announced the end of power cuts for the remaining part of the summer.
