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Egypt Directs Tariff Increase Toward Mounting Power Sector Fuel Bills
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The Middle East Observer
The move underscores the growing financial strain on the country’s power sector despite successive price increases.
The Ministry of Petroleum supplies natural gas and fuel oil to state-owned power plants, while the Ministry of Electricity sells electricity at government-regulated prices.
Separate officials cited by Asharq Bloomberg said the cost of producing one kilowatt-hour of electricity has exceeded EGP3.25, compared with about EGP2.23 following the previous nationwide tariff increase in mid-2024.
Tariff changes remain targetedThe latest tariff adjustment, effective from August, maintained the lowest household consumption bracket (0-50 kWh per month) without any increase, preserving support for the lowest-income consumers.
The latest increase is part of Egypt’s broader energy subsidy reform programme, which aims to improve the financial position of state-owned utilities while ensuring reliable fuel supplies during periods of peak summer demand.