Egyptian government to raise mazout fuel prices for cement companies

The Egyptian government is to raise fuel prices for cement companies that use mazout for production by 130 per cent, according to local press.

The price hike means that per-tonne mazut prices will rise from EGP1000 (US$162) to EGP2300 (US$373), state reports by Ahram Online.

Mazout, the raw material from which diesel is derived, will be sold at the new price to all of Egypt's industrial sectors with the exception of electricity production companies and food industries and bakeries, due to high domestic demand for their respective products. the new prices will go into effect next Saturday, 22 December.

In response to the decision, Suez Cement stated on Thursday that the price hikes would force it to shut two of its factories that depend on the alternative fuel.

The company added that around 2000 workers would be laid off as a result, stressing that the government had issued its decision without first discussing the move with industry leaders.