Tuesday, April 22, 2014
New Gas Price restructuring!
A new pricing structure for natural gas was approved by the government on Sunday.
Consumption below 25 cubic metres of gas per month will now be charged at LE0.4 ($0.06) per cubic metre.
Consumption between 25 and 50 cubic metres per month will cost LE1 ($0.14) per cubic metre.
Consumption above 50 cubic metres per month will be charged at LE1.5 ($0.21) per cubic metre.
The new maximum price is triple the current limit, which was raised in July 2012 to LE0.5 ($0.07) from LE0.3 ($0.04) per cubic metre.
Since July 2012, the tariff for monthly consumption up to 30 cubic metres has been LE0.1 per cubic metre, while any extra consumption is charged at LE0.5, Ahram Online reported last year.
The decree, which takes effect in May, exempts subsidised bread producers from the price increases.
“The new decree raises gas prices to 20 percent of the international price for natural gas, as compared to 7 percent now,” Faisal Aboul-Ezz, Egypt Gas chairman, told privately-owned local news channel CBC extra on Monday.
Subsidised gas cylinders, used in many poor homes, contain around 15 cubic metres of gas at a cost of LE8 ($1.1), which means that each cubic metre costs LE0.55 ($0.08), Aboul-Ezz added.