Egypt’s Chemical and Fertilisers Export Council filed a request in late August to the Ministry of Trade and Industry asking for a reduction of gas prices to $3.5 per million British thermal units (MBTU).
The cost of gas makes up about 40 per cent of the price of the industry’s products, said Khaled Abul-Makarem, chair of the council.
While gas prices vary for different industries, Egypt’s heavy industries suffer from a high price of gas, reaching $4.5 MBTU, when the average international price is $2.5 MBTU.
Abul-Makarem wants to see Egyptian industrialists pay the international price for gas. The government cut gas prices for industry in March as part of a stimulus package to support the industrial sector to $4.5 MBTU, down from $6 MBTU.