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Egypt hikes electrical energy rates for households by approximately 50%, sources state

Egypt is increasing electricity rates for households by up to 50%, 2 government sources stated on Monday, as the nation gradually phases out subsidies as part of an arrangement with the International Monetary Fund.

A source at the electrical energy ministry told Reuters the new increase in electrical energy costs was used on Saturday for the prepaid meter system, and would be applied for regular meters on Oct. 1.

The raises variety from 14.45% to 50%, the source included.

The latest walking was because of work earlier in the summertime but was postponed as the nation faced power lacks, with high cooling need driving up usage.

Egypt resorted to load-shedding to keep the grid functioning, saying it needed to import around $1.18 billion worth of natural gas and mazut fuel oil to end the long-running cuts. The country creates the majority of its electrical energy from burning natural gas.

The petroleum ministry stated last month that Egypt had got five freights including 155,000 cubic meters of melted gas out of 21 cargoes that it had actually contracted for, with Prime Minister Mostafa Madbouly later on revealing the end of power cuts for the remainder of the summer.

Egypt has dedicated to slashing energy subsidies as part of an agreement to broaden its loan program with the IMF to $8. billion in March, but had actually repeatedly held off electrical power rate. boosts recently as the country struggled with economic. pressures.

(source: Reuters)