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FINANCIAL NEWS
Bye bye to cheap fuel for Egyptian cement factories
28 Aug 2012
(MENAFN) Egypt’s heavy industries, including cement factories, will no longer get cheap energy, as the government seeks to cut its widening budget deficit, Ahram Online reported.
The Minsiter of Industry and External Trade Hatem Saleh said that the decision will affect 14 newly-licensed factories.
He explained that the new factories will individually purchase energy through the Petroleum Ministry according to international rates, adding that energy prices for existing cement producers would gradually be readjusted to be even with prices for new ones.
The government has traditionally helped cement producers by providing the fuel they require to generate electricity at prices much lower than market rates.
Fuel subsidies represent 48 percent of Egypt’s total subsidy bill, which amounts to USD24.15 billion, including food subsidies.
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