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Egypt: Egypt increases electricity cost by 42%


Egypt increased electricity prices by up to 42 % on Thursday, a week next hiking fuel prices as part of tough economic reforms.
The new rises depending on consumption levels will take result as of this month, Minister of Electricity, Mohammed Chaker said, according to national television.

“The ministry has a plan to phase out electricity subsidy by 2021,” he added. The new hikes cut the electricity subsidy in the country’s new fiscal year starting in July by 32 billion Egyptian pounds (around 1.7 billion dollars), private newspaper al-Masry al-Youm reported.
On June 29, the government increased petrol prices by 43 to 55 %, the second such increase in less than a year. The price of the cooking butane gas has doubled while that of natural gas has increased by 25 %. The government has defended the subsidy cuts, saying they are necessary to heal Egypt’s ailing economy. In November, Egypt slashed the fuel subsidy and floated the local pound, measures that secured the country an IMF bailout loan of 12 billion dollars over three years.

The November steps triggered a spate of price increases in different goods and services in the country.
A lot of of Egypt’s people, presently estimated at 93 million people, have long relied on subsidies for basic products.
Annual inflation hit a record 30.9 % in May.
Egypt’s economy has been battered by the unrest that followed a 2011 uprising, which deposed long-time president Hosny Mubarak.
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