Egypt government raises electricity rates by 40% to reduce subsidy costs

The Egyptian government is set to increase electricity prices by 40 percent or more for households, businesses, and industries, according to Mada Masr news site. The move is part of the country’s efforts to lessen subsidies and comply with IMF recommendations. Despite concerns about public backlash, the increases will be announced on the official website of the Egyptian Electric Utility and Consumer Protection Regulatory Agency.

With rising costs of living and inflation, Egyptians are already feeling the pinch of higher prices for basic goods and frequent power cuts. The price hikes, which will impact industrial sectors with a 40 percent increase in selling costs, are necessary for the $8 billion loan program with the IMF.

The news of impending price hikes has caused panic among citizens, who are calling for transparency. Coupled with recent fuel price increases and austerity measures, the electricity fee changes are expected to worsen frustrations in Egypt. Experts attribute Egypt’s economic crisis to severe mismanagement and costly projects like the New Administrative Capital.