Sunday October 31, 2021
I wrote – Sherine Salah:
Ashraf Al-Jazairly, head of the Chamber of Food Industries in the Federation of Industries, told Masrawy that the increase in natural gas prices will be reflected in the increase in the prices of food commodities in the markets.
Al-Jazairly added that the value of the increase is determined according to the economic cost of each factory.
The government raised the price of natural gas for iron and steel plants, cement, fertilizers, petrochemicals, and other industrial activities between $0.25 and $1.25 per million thermal units.
And the Official Gazette published, in its issue issued last Thursday, the Prime Minister’s decision to set new prices for natural gas for factories, and ensured that the price would become $5.57 per million British thermal units for the manufacture of cement, iron and steel, fertilizers and petrochemicals, or according to the price formula contained in the contracts (instead of 4.5 dollars).
The decision also sets the price of one million British thermal units for all other industrial activities at $4.75 (instead of $4.5), according to the decision.
Al-Jazairli stated that the government reduced the price of natural gas for factories during the past year to 4.5 dollars per million price units as part of the stimulus package for the sectors to help factories during the Corona crisis, noting that this price was temporary.
According to El-Gazzarelli, raising natural gas prices for factories again was expected after the temporary decline that occurred last year.
Global natural gas prices are witnessing record jumps this year due to the shortage of supplies, and the increase in demand compared to supply.
This jump contributed to an increase in Egypt’s exports of petroleum products by 33.8 percent to $1.819 billion in the first quarter of 2021, compared to $1.359 billion during the same quarter of 2020, according to data from the Central Agency for Public Mobilization and Statistics.