A governmental source has revealed intentions within the economic ministerial group to increase the price of gas used in energy-intensive industries up to US$6 per million thermal units, instead of the current price of $4.
Speaking to Al-Masry Al-Youm, the source revealed support toward the move by the economic ministerial group, given that the price was raised up from $3 to $4 for steel and cement industries under former Prime Minister Kamal al-Ganzoury’s cabinet. It was planned to increase it to $6, but the decision was not taken.
The decision to increase the price will save LE15 billion of the total energy subsidy, the source said adding that the government will work on applying the smart card system to distribute the gasoline and diesel oil, which will save LE15 billion through eradicating smuggling of petroleum products.
In related news, Prime Minister Ibrahim Mehleb resumed sessions with economic ministerial group to hear views over restructuring of energy subsidy.
The group convened for the third session in row on Sunday. Ministers of petroleum, finance, trade and industry, food supply, electricity, solidarity and telecommunications as well as the Central Bank of Egypt governor attended. The first session took place on Wednesday.
The group is scheduled to meet on Monday to conclude discussions over the issue and review it during the next cabinet meeting.
Edited translation from Al-Masry Al-Youm