Egypt raises prices of household and commercial gas canisters as part of subsidies cut

Cairo – September 19, 2024: Effective yesterday morning, the price for household cylinders surged by a significant 50 percent from LE 100 to LE 150, while commercial cylinders now cost LE 200, up from LE 150—a 33 percent hike.

According to Prime Ministerial Resolution No. 3001, published in the Egyptian Gazette, Prime Minister Mostafa Madbouly authorized Minister of Petroleum and Mineral Resources Karim Badawi to implement these price changes.

The Ministry of Petroleum and Mineral Resources reduced subsidies on the prices of butane gas cylinders as part of the government's ongoing efforts to rationalize fuel subsidies and manage the national budget.

Despite these increases, the state continues to subsidize butane, with actual costs estimated at LE 200 for household cylinders and LE 450 for commercial use, explained an unnamed source to news outlet Enterprise.

The increases were driven by rising global fuel prices and are expected to help the state save over LE 27 billion annually in expenditures.

The price of mazut supplied to power plants increased by 160 percent, from LE 2,500 to LE 6,500 per ton.

Media reports indicate that Egypt imported fuel shipments worth approximately $9.3 billion during the first eight months of 2024, up from $8.3 billion in the same period last year, reflecting a 12 percent growth rate.

The Egyptian General Petroleum Corporation is also reported to have contracted petroleum materials worth $1.35 billion in August 2024, compared to $945 million in August 2023.

The government has been steadily reducing petroleum product subsidies throughout the year, with previous fuel price increases in July including the price of mazut for most industries climbing by 13.3 percent to LE 8,500 per ton, and car fuel prices seeing a 11-15 percent hike.

Prime Minister Madbouly recently announced that further price adjustments will occur gradually until December 2025.

These measures come amid a reported decline in Egypt’s oil production, which has fallen by 30 percent since March 2021.

In 2023, the government provided natural gas to 14.2 million housing units nationwide.