The Egyptian Government backed from its decision to cut the gas prices for iron and steel factories from $7 per 1m British Thermal Units (BTU) to $4.5 per 1mBTU, reported Daily news Egypt.

The government had announced this decision back in March. Yet, it cancelled it because of the high cost of fuel that is caused by the average price of imported and locally produced fuel.

The Egyptian Minister of Petroleum and Mineral Resources, Tarek EL Molla, had stated that the gas prices will not reduce. He added that the ministry will be liberalizing the energy market and adopting new regulations imposed by the gas market regulatory authority. The authority was established in order to manage gas trade and set its prices for the local market. Accordingly,  the gas market regulatory authority will permit the private firms to import gas and then use the national pipeline grid to transport it from ports to factories based on the prices agreed upon with importers and factory owners.

In really November, the Egyptian Minister of Industry and External Trade, Tarek Kabil, had stated that Egypt will maintain the decision to reduce gas prices for steel factories that the government had planned to apply in September 2016.