Egypt’s heavy industries will see a rise in subsidised energy prices, backdated to January 2012, the state-run Al-Ahram newspaper reported on Sunday.

Mohamed Shoeib, CEO of the Egyptian Natural Gas Holding Company (EGAS), said natural gas prices will be raised from $3 to $4 per million British thermal units (MBTU) for fertiliser factories, while non-intensive industries such as glass and ceramics will pay between $2.3 and $3 per MBTU.

Energy prices for small industries will remain at $2 per MBTU, according to Shoeib, adding that changing this remaining subsidy would put the petroleum sector in financial trouble.

The government announced in January a plan for a 33 per cent hike in the prices it charges heavy industry for supplies of natural gas and electricity in a bid to narrow its growing budget deficit.

Egypt's government announced in June that it would slash fuel subsidies by 27 per cent in the 2012/13 financial year. The amount spent on fuel subsidies will fall to LE70 billion in 2012/13 from LE95 billion in the last fiscal year, and make up 48 per cent of Egypt's total subsidies bill of LE145.8 billion.