Minister of Electricity and Energy Hassan Younis said low prices of electricity during the coming period will directly lead to a decline in the value of electricity bills. The Ministry of Electricity still buys oil derivatives from the Ministry of Petroleum at prices lower than the world prices.
Speaking to Al-Masry Al-Youm, Younis said the Ministry of Electricity prepared a plan for the establishment of a new body for rationalizing energy. The plan would be reviewed by the Cabinet in the coming meeting. The minister attributed the rise in prices of electricity last November - which exceeded from 5% to 7.5% - to an increase in oil prices at the local level. The differential of 2.5% goes directly to the Ministry of Petroleum to cover the new rise in prices.
With regard to the increase in electricity prices under the pretext that oil prices increased although they declined all over the world, Younis said oil prices in Egypt, either for citizens or government bodies, are still lower than world prices. If world oil prices declined below the local prices, this would necessarily lead to a decline in local prices of oil and, in turn, electricity. Well-informed sources told Al-Masry Al-Youm that the Ministry of Petroleum increased the oil derivatives it sells to the Ministry of Electricity, as the price of a barrel increased from $12 to $18. This led to a 2.5% increase in electricity prices.
