The IISD Global Subsidies Intiative worked with the Egyptian Ministry of Petroleum and the World Bank on a communications strategy for energy subsidy reform with an emphasis on short-term priorities and work to prepare the ground for subsidy reform.
In early-July 2014, the Egyptian Government announced sweeping measures to significantly increase most of the energy prices paid by businesses and households. ‘Big bang’ reform of this kind is a bold break from the past: energy prices in Egypt have changed little over several decades. According to the government, the reforms represent a decisive first step in reducing the burden of energy subsidies on Egypt’s public finances.
The Egyptian government has announced that it intends to cut gas and electricity subsidies to some 40 companies in energy intensive industries over the next three years.
The Egyptian Ministry of Trade and Industry estimates that energy intensive industries receive some 75% of subsidies to gas and 61% of subsidies to electricity.