Cairo – December 5, 2024: In a recent announcement, Prime Minister Mostafa Madbouly declared significant changes to the pricing and payment systems for natural gas, which are set to take effect in December. One of the key decisions stipulates that companies operating within Egypt's free zones and other economic zones will now pay for their natural gas in US dollars.
These decisions, outlined in the Official Gazette, aim to create more stability and predictability for both electricity generation and industrial consumption of natural gas.
For businesses located outside of the free zones, the cost of natural gas will still be calculated in Egyptian pounds.
These businesses will now be required to pay the equivalent amount in EGP, based on the average exchange rate of the USD as set by the Central Bank of Egypt (CBE) for the previous month.
These new measures come as part of two distinct decisions made by Madbouly.
The first decision specifically targeted the pricing of natural gas used for electricity production, setting a price of $4 per million thermal units for both government electricity production companies and other related entities.
Madbouly’s second decision highlighted that gas prices for industrial activities will be based on the average USD exchange rate as announced by the Central Bank of Egypt (CBE) for the month preceding the consumption period. This ruling was implemented starting December 1st.
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