Gov’t studying lower energy prices for factories? The government is looking into revising the price at which it sells energy to factories, Deputy Planning Minister Ahmed Kamaly said yesterday at a trade and industry-focused event, according to Al Mal. The minister’s statements were likely in response to calls by the Federation of Egyptian Industries for lower prices. “It is imperative to reduce [natural gas and electricity] prices to factories, especially those producing cement and metals,” the FEI customs and taxes committee head Mohamed El Boha said during the event.

Wait, remind us why it’s a good idea for us all to subsidize energy for industry? The sector has for years been lobbying for cheaper gas. The Ismail Cabinet suggested steel industry players could get a reprieve, but this never materialized. A more recent pledge was also attributed to Prime Minister Moustafa Madbouly by 10th of Ramadan Investor Association boss Samir Aref, who said claimed that manufacturers pay between USD 2-3 / MMBtu more than the global average. The government took a step to please the industry last year when EGAS introduced more flexible payment terms and eliminated the 2.5% surcharge on overdue gas bills.

Tags: