Egypt to save $3.5 bln annually from power cuts: El-Sisi

El-Sisi further explained that while additional natural gas supplies are required to eliminate power interruptions, the government opted to export the gas to ensure the availability of diesel and fuel.

With temperatures rising and natural gas production declining, the Egyptian government implemented a power cut plan in July.

"The Ministry of Electricity sells electricity for less than its production cost, with 17 million citizens still paying just a quarter of the real cost for electricity", El-Sisi stressed.

In August, and notwithstanding the ongoing challenges, the government decided to freeze any increase in electricity sale prices till January 2024, owing to the present economic circumstances.

Electricity consumers in Egypt pay $0.032 per kilowatt-hour (kWh). US and European consumers, on the other hand, pay $0.23 and $0.30 per kWh, indicating that electricity tariffs in Egypt are significantly lower than those in the US and the EU. 

The president also noted that the government is providing power plants with natural gas at reduced prices.

Egypt supplies natural gas to electricity plants at $3 per million British thermal units (MMBtu).

Meanwhile, according to Bloomberg, global natural gas prices remain at approximately $2.93 per MMBtu.