Egypt cuts natural gas subsidies to factories, increase by 30-75%

Egypt slashed its natural gas subsidies to several industries increasing gas prices by 30-75 percent, part of a broad government strategy to cut back subsidies that eat up to a fifth of its annual budget.

The new cut that was announced in the state's official gazette on Saturday came immediately after a decision to reduce car fuel subsidies, raising mainstream fuel prices up to 78 percent.

Egypt's government, appointed last month by the newly elected President Abdel Fattah al-Sisi, said it was determined to tackle the subsidies' burden and cut most within five years.

Saturday's new decision would increase the price of natural gas to $8 per one million thermal units for the cement factories and to $7 for the iron, steel, aluminium, copper, ceramic and glass industries.