Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Egypt announces cuts to electricity subsidies in latest austerity move

    Egypt announces cuts to electricity subsidies in latest austerity move

    June 13, 2018
    Share
    Facebook Twitter LinkedIn WhatsApp
    President Abdel Fattah al-Sisi of Egypt

    13 June 2018, Cairo – Egypt has announced new cuts to electricity subsidies, raising prices by an average of 26 percent from July, the latest in a raft of tough economic reforms.

    Electricity Minister Mohamed Shaker said electricity costs for factories would rise by 42 percent and for households by 21 percent.

    Egypt has committed to deep cuts to energy subsidies and other tough fiscal measures as part of a three-year, $12 billion International Monetary Fund (IMF) loan programme begun in 2016.

    The government of President Abdel Fattah al-Sisi, re-elected for a second term this year, intends to take further tough measures, including fuel subsidy cuts expected in the summer.

    Egypt’s economy was hit during the years of unrest following the 2011 popular uprising that toppled President Hosni Mubarak.

    The IMF has praised Egypt’s economic reforms, which included a currency float in 2016 that halved the value of the pound.

    Economists see some grounds for hope in reviving the economy, pointing to indicators such as GDP growth, which rose to 5.4 percent in the third quarter of 2017-2018, up from 4.3 percent during the same period the previous fiscal year.

    Egypt’s fiscal year runs from July to June.

    The government has said electricity subsidies will be phased out completely by the end of the 2021-2022 fiscal year.

    Egypt will be “forced to increase administered prices by more than it otherwise would have done in order to meet IMF mandated fiscal targets,” Capital Economics said in a report in May.

    It said fuel price rises would have to rise by 60 percent in July to keep the subsidy reform programme on track.

    Many ordinary Egyptians have been hit hard by the austerity measures, especially the currency devaluation. But the moves are seen as vital to improve the battered economy, however.

    “It will be challenging for middle income and lower income groups,” Radwa El-Swaify, head of research at Pharos, told Reuters in May. “However, the government has implemented different social packages … trying to alleviate some of the negative impact on the lower income groups.”

     

    • Reuters

    Related News

    Wärtsilä chosen for a 30 MW power plant project in Nigeria

    Nigerian sub nationals now regulate own electricity markets

    Electricity storage: the challenges of tomorrow

    E-book
    Resilience Exhibition

    Latest News

    As IOCs exit onshore, NCDMB urges indigenous firms to ‘step up’

    May 23, 2025

    Gold climbed amid fiscal and geopolitical uncertainty

    May 23, 2025

    Oil prices under pressure by expanding OPEC+ output

    May 23, 2025

    Shell Nigeria Gas engages stakeholders on deepening gas distribution

    May 23, 2025

    Ibas launches secretariat overhaul, links infrastructure to public service efficiency

    May 23, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.