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Israel refuses Egypt's request to increase gas prices
Published in Youm7 on 24 - 05 - 2011

The Israeli newspaper Jerusalem Post said there is currently a political crisis between the governments of Egypt and Israel. Israeli Prime Minister Benjamin Netanyahu rejected Egypt's demand to increase the prices of Egyptian gas exported to Israel.
The newspaper paper said that severe differences have recently risen between Egypt and Israel because the Israeli government refused to pay more for Egyptian gas. The Egyptian government is, however, insisting on increasing the prices of its gas exports so that it is in accordance with international prices.
Egyptian gas has not been reaching Israel because of this disagreement. This is happening despite the fact that the gas company owned by Hussein Salem, fugitive Egyptian businessman and close friend of deposed President Hosni Mubarak, promised before that it would resume exporting gas to Tel Aviv after stopping because of the incident in El Arish which caused explosion of gas supply lines to Israel.
The newspaper said the natural gas that Egypt gives to Tel Aviv makes up 40 percent of the total energy that Israel needs. Egypt gives it to Israel because of an agreement signed between Cairo and Tel Aviv under the 1979 peace agreement.
Israeli Prime Minister Benjamin Netanyahu recently sent a delegation to Cairo under the chairmanship of his political advisor, Yitzhak Molkho. The delegation asked senior officials of the Egyptian administration to not change gas prices in accordance with the agreement signed with Salem's East Mediterranean Gas Company.


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