Rashid Mohamed Rashid, Minister of Trade and Industry denied that the Government has any intention presently to raise energy prices. He pledged that the State at the end of last year decided not to increase prices in line with the conditions of the global financial crisis. Rashid said in a statement yesterday on the sidelines of the announcement of the Competitiveness Report: The current situation does not permit any steps of pressure on the growth of industry and exports, which need to be strongly supported by the government to raise the rates of development. Dr. Ahmed Nazif, the Prime Minister, had agreed earlier this year on the proposal of the Ministry of Trade and Industry which was to postpone the implementation of the planned increase of natural gas and electricity to a few installations of energy consumption to the end of this year, helping them to overcome the repercussions of the global crisis. Rashid added: "The heavy industries of energy consumption currently receive gas at world prices. Those include steel, cement, aluminum and fertilizers, all of which have made large profits, which are due in part to the support which was provided by the State for the cost of energy in the previous phase" He confirmed that the government is clear regarding the formulation of a power pricing policy in Egypt, so as to assure new investors on where they stand with regard to these industries whether in heavy or low in consumption. It is noteworthy that the aluminum, iron, cement, fertilizer plants monopolize 55% of the energy for the industrial sector, and approximately 75% of natural gas and 61% of electricity, while its contribution to the industrial output amounts to 20% and employment does not exceed 7%.
As for Ahmed Shebl, Managing Director of 'Lafarge Cement Egypt' he said: "the cost of producing a ton of cement has increased to LE180 about a year ago because of the decisions of May 5, pointing out that the price of diesel and gas increased by 100%; the price of electricity has increased from 13 to 22 pts for kilowatt per hour, in addition to imposing a tax on 'clay' by 35 pounds per ton of cement.
