Egypt to raise electricity prices as of July
The Egyptian government will raise electricity prices as of July this year as the country strives to rein in a swelling budget deficit and public debt.
Hany Kadry Dimian, the country’s minister of finance, announced that it has been decided to raise electricity prices as of the beginning of the new fiscal year, which starts in July.
In remarks carried by Masrawy, Dimian said that the price hike targets people with high income and high electricity consumption.
He added that subscribers, who make up the lower three consumption brackets, will remain exempted from the price hike until they start consuming more than 200 kilowatts.
According to the minister, the move is part of efforts to rein back the state’s huge budget deficit and public debt, which place major pressures on the state’s treasury.
The Egyptian government has, since last year, been gradually cutting energy subsidies to trim its ballooning deficit and debt.
The 2015-2016 budget of Egypt provides support to energy-saving initiatives but the government did not disclose the value of fuel subsidies in the new budget.
In the meantime, Tarek El Molla, chairman of state-run Egyptian General Petroleum Corp (EGPC), has said in a statement that the government has earmarked EGP61 billion ($8bn) for fuel product subsidies in the 2015-2016 budget.