Will re-pricing natural gas cast positive shadow over Egypt's industry?

The Egyptian Cabinet announced Oct. 3 its approval of the recommendations of the ministerial committee regarding re-pricing natural gas used in some metal industries and building materials — a move that has drawn mixed reactions over the tangible impact of the new prices on the country's industrial sector.

According to the Cabinet's decision, gas prices for the cement industry fell to $6 per million British thermal units (Btu) instead of $8. The price of gas used in the iron, steel, aluminum, copper, ceramic and porcelain industries also fell to $5.5 per million Btu instead of $7.

Meanwhile, Egyptian Prime Minister Mustafa Madbouly said during the Cabinet session that these prices are to be reviewed every six months in light of the current changes in world prices along with economic and social conditions.

Following the decision, some companies listed on the Egyptian Stock Exchange released separate statements, clarifying how they are affected by the newly approved re-pricing of natural gas.