Egypt increases gas prices for industries as energy costs fluctuate

Egypt has raised natural gas prices for several energy-intensive industries, marking another step in its effort to manage rising fuel costs while keeping pressure on public finances under control. The decision, outlined in a prime ministerial decree published Sunday, takes effect in May and applies only to industrial users. Household gas tariffs remain unchanged.

According to a prime ministerial decree published on Sunday, the new pricing structure takes effect in May and applies only to industrial users. Households will not be affected, with existing residential pricing formulas left unchanged. Officials framed the decision as part of ongoing adjustments meant to manage rising import costs without disrupting basic consumer supply.

Energy-intensive industries see higher costs 

Under the revised framework, gas prices will rise by an average of $2 per MBtu. Cement producers will now pay $14 per MBtu, making them among the most affected. Iron and steel manufacturers, non-nitrogen fertilizer producers, and petrochemical plants will pay $7.75 per million British thermal units. Other industrial users, including facilities working with ethane and propane blends, will see rates between $6.50 and $6.75 per million British thermal units.

The government said the changes are intended to support a gradual reduction in energy subsidies as part of an $8 billion agreement with the International Monetary Fund. The program is aimed at easing fiscal pressure while helping the country adjust to higher and more volatile energy import costs. This follows a series of energy price increases earlier in the year.

In March, fuel prices were raised by as much as 17 percent after sustained increases in global oil and gas markets. In April, electricity tariffs were also adjusted for larger households and businesses, while lower-use residential customers were largely shielded. Consumers using up to 2,000 kilowatt-hours per month saw no change, while higher-usage households faced an average increase of 16 percent. Commercial tariffs rose by 20 percent across all usage bands.

Energy imports pressure fiscal balance 

Officials have said the changes are designed to balance rising costs with the need to maintain stable supply across households and industry. Egypt’s exposure to imported energy has increased, with the overall energy import bill more than doubling in recent years and monthly natural gas import costs nearly tripling since the escalation of the U.S.-Israeli war with Iran, according to government-linked figures cited in policy discussions.

Even with tighter domestic pricing, international energy firms continue to show interest in the country’s gas sector. BP is preparing a $1.5 billion investment plan for Egypt’s gas industry in the 2026/2027 fiscal year. The program is expected to focus on exploration work, upstream development, and new drilling activity, even as policymakers work through higher near-term costs and subsidy reductions.