The move was announced by Minister of Industry and Transport Kamel El-Wazir during the 31st meeting of the Ministerial Group for Industrial Development, which he chaired in Cairo on Tuesday.
During the meeting, El-Wazir stressed that the protocol aims to balance company interests with market stability, reaffirming the state’s commitment to supplying the necessary gas volumes to keep fertilizer plants running.
Regulatory bodies, including the Competition Protection Authority and the Consumer Protection Agency, have been tasked with monitoring the market and curbing any unjustified price increases.
Effective 16 September 2025, the government increased natural gas prices for the industrial sector by 21 percent, from $4.75 to $5.75 per million British thermal units (BTU), equal to approximately $170 and $206 per thousand cubic metres, respectively.
The new rates apply to all industries, with specific pricing formulas for fertilizers, iron and steel, cement, and other sectors.
A study by the Egyptian Natural Gas Holding Company (EGAS) estimates the actual cost of supplying gas to factories at $6 per million BTU (about $215 per thousand cubic metres), citing rising import tariffs and supply constraints.
Egypt’s industrial sector uses 2.1 billion cubic feet of gas per day (around 59 million cubic metres), making up one-third of the country’s total daily consumption of 6.2 billion cubic feet (176 million cubic metres).
Domestic production ranges between 4.1 and 4.3 billion cubic feet daily (116-122 million cubic metres), creating seasonal supply gaps that may reach 7 billion cubic feet per day (198 million cubic metres) in peak summer months.
Fertilizer and petrochemical plants account for 35-40 percent of total industrial gas consumption, with fuel representing up to 85 percent of their production costs.
This makes them highly sensitive to energy prices, with direct implications for industrial competitiveness and food security.
Egypt’s fertilizer market was valued at $34.26 million in 2024 and is projected to grow to $40.79 million by 2030, at a compound annual growth rate (CAGR) of 3.15 percent, according to consulting firm TechSci Research.
This growth is being driven by rising food demand as Egypt’s population is expected to exceed 120 million by 2030.
This demographic pressure has led the government to prioritize food security and ensure a steady supply of key crops, reinforcing the strategic role of fertilizers in improving productivity.
Fertilizers, particularly nitrogen-based types, play a critical role in enhancing soil fertility and improving crop yields. Their use is especially vital in Egypt’s major agricultural zones, including the Nile Delta, where maximizing land efficiency is essential to meet rising consumption needs.
The meeting, attended by several cabinet ministers and industry leaders, also addressed the challenges facing local manufacturing, including customs disparities in electric bus imports and smuggling threats to the porcelain and watch industries.
El-Wazir noted that while fully assembled electric buses enjoy customs exemptions, imported components for local assembly are still subject to tax, thereby undermining domestic producers.
He called for a comprehensive study to propose protective measures for locally made buses.
On smuggling, the minister urged tighter inspection protocols at ports and stronger coordination between the Ministry of Investment and External Trade and the Customs Authority.
He also highlighted the role of standards and quality agencies in ensuring imported goods meet Egyptian specifications.
The minister concluded the meeting by affirming that the ministerial group will continue to follow up on these issues to support the national industry and boost its competitiveness both locally and globally.
Manufacturing is one of five priority sectors in Egypt’s new economic development narrative, which aims to accelerate growth and job creation through 2030, with the goal of raising real GDP growth to seven percent.
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