Why is Egypt raising electricity prices despite new gas discoveries?

Egyptian Cabinet spokesperson Mohamed al-Hommosany responded to an inquiry raised over increasing electricity prices even despite new natural gas discoveries, which should ease the burden on government in operating electricity stations.

During a phone interview with al-Mehwar satellite channel on Tuesday, Hommosany added that the state has local fuel production but it remains insufficient for the state’s needs, therefore the state resorts to importing.

He added that the country’s needs for petroleum and natural gas amounts to US$55 billion annually, while local production only amounts to $33 billion.

Therefore there is a need to import the equivalent of $22 billion annually, he explained, which is are dues of foreign partners in exploration work and the petroleum products that the state imports.

He explained that the state bears a large burden on subsidizing electricity, adding that the government has developed a gradual plan across four years to lift subsidies on electricity.