Egypt Raises Natural Gas Prices for Energy-Intensive Industries

Egypt raised natural gas prices for a range of energy-intensive industries starting in May, according to a decision issued by Prime Minister Mostafa Madbouly and published on Sunday. 

The move comes as part of ongoing adjustments to energy pricing policy amid rising global costs and broader fiscal reform efforts.

Under the new pricing structure, the government increased gas prices by around $2 per million British thermal units. The revised rates set gas for cement factories at $14 per MMBtu, while iron, steel, non-nitrogen fertilizer, and petrochemical industries will pay $7.75 per MMBtu. 

Other industrial users and selected petrochemical activities will face prices ranging between $6.50 and $6.75 per MMBtu depending on usage and production inputs.

The government clarified that the new increases apply exclusively to industrial consumers and will not affect household users. Residential contracts, it said, already include pricing formulas that account for market fluctuations, insulating consumers from direct adjustments.

The decision comes as Egypt continues to implement energy subsidy reforms under its agreement with the International Monetary Fund, which includes an $8 billion support program aimed at strengthening fiscal stability and improving economic resilience. 

The reforms are part of a wider strategy to reduce the burden of subsidies on the state budget while aligning domestic prices more closely with global market conditions.

In March, the government had already raised domestic fuel prices by up to 17 percent in response to higher international energy costs. Officials have repeatedly stated that these adjustments are necessary to ensure financial sustainability and manage external pressures.

At the same time, Egypt’s energy import bill has more than doubled in recent periods, while monthly costs for natural gas imports have nearly tripled since the escalation of the U.S.–Israel–Iran conflict, which disrupted regional energy flows and increased reliance on imported liquefied natural gas and regional suppliers.

Industrial sectors, particularly cement and steel, are expected to face increased production costs as a result of the new pricing structure. 

However, policymakers argue that the adjustments are unavoidable given global energy volatility and the need to reduce the fiscal strain caused by energy subsidies.