The Egyptian government will increase natural gas and electricity charges for heavy industries by 33 percent to narrow its growing budget deficit, according to media reports.
Egyptian finance minister Mumtaz al-Saeed stated that the new rates will be applied to the steel, cement and ceramics industries in January, aiming to cut EGP 20 billion ($3.3 billion) off the deficit.
Cutting energy subsidies for heavy industries is one of the practical solutions for reducing the budget deficit. While implementing the new rates, the government will pay attention not to hurt lower income groups.