Ministry of Petroleum and Mineral Resources Announces New Economic Decisions

As part of efforts to keep pace with economic changes and amid the government’s price review plan, the Ministry of Petroleum and Mineral Resources has taken a set of new economic decisions related to fuel prices and prices of stove pipes.

The move comes in the wake of periodic adjustments aimed at ensuring sustainability of energy storage and managing aid more effectively.

Tube Price Increase

From 6 am on Wednesday, the Ministry of Petroleum and Mineral Resources began implementing the increase in selling prices of butane cylinders for both domestic and commercial use, according to a decision issued by the Prime Minister.

The price of a home stove cylinder was raised from £100 to £150 after delivery from the factory. Also, the price of gas cylinders for commercial use has been increased from £150 to £200.

The ministry also implemented an increase in the price of a tonne of diesel directed at power generation and production plants, as the price increased from 2,500 pounds to 6,500 pounds, while the price of factories remained unchanged.

In view of the same decision, the Ministry of Petroleum and Mineral Resources announced to increase the sale price of bulk gas by 12 thousand pounds per ton.

Securing Local Market’s Gas Demand

General Petroleum Corporation completed the purchase of 20 shipments of liquefied natural gas to secure the local market’s gas demand during winter in the first tender issued by General Petroleum Corporation to meet winter demand from 2018.

Petroleum and Mineral Resources Minister Engineer Karim Badawi’s instructions to avoid gas crisis.

Economic Analyst’s Perspective

For his part, the economic analyst, Islam Al-Amin, said that the increase is an inevitable result after the continuous increase in energy prices in Egypt, as part of the government’s efforts to achieve a balance between sustainable energy savings and reducing the burden on the General Budget.

Al-Amin added that although this growth has economic and social implications in the short term, in the long term it can contribute to improving economic efficiency and resource sustainability.

The government is keen to continue supplying fuel and energy, which is a costly matter in light of economic changes and the global rise in raw material prices.

Impact on Low-Income Families

The secretary pointed out that the decision to increase prices comes as part of a more effective support orientation, as it appears that the government is trying to reduce public expenditure on energy support and direct resources to the most needy sectors.

He concluded that these increases could encourage the search for alternatives to traditional energy, such as solar energy or the widespread use of natural gas in homes and industry, which could help reduce dependence on traditional fuels.