Egypt's government to raise electricity and petrol prices next month: Minister

Egypt's government is planning to raise the prices of electricity and all state-subsidised fuels with the start of the 2014-2015 fiscal year next month, according to statements made by Planning Minister Ashraf El-Araby, as reported by Reuters.

Speaking at a press conference on Saturday during which the power cut four times, El-Araby told reporters that the cabinet plans to "introduce a series of measures designed to definitively tackle the budget deficit," including a rise in electricity prices for higher-consuming segments of the population and a re-pricing of all petroleum products.

The government's ultimate aim is to completely liberalise prices within the next three to five years, said El-Araby.

Last week, President Abdel-Fattah El-Sisi refused to ratify the state budget for the 2014-2015 fiscal year on the grounds that the budget deficit – projected at LE292 billion, or 12 percent of GDP – was excessively high.

The budget deficit will reach between LE240-250 billion by the end of the current fiscal year on Monday, according to Finance Minister Hany Kadry Demian.