Electricity prices will increase by an average of 26% on July 1 as subsidy cuts included in the 2018/19 fiscal budget are introduced, according to a document released by the Ministry of Electricity.

Households will see their electricity bills increase by an average of 20.9% while factories will see rises of around 41.8%.

Price rises will be determined by the amount of energy consumed, and will differ between household and commercial customers.

The subsidy cuts come as part of the government’s long-term plan to eliminate subsidies completely by fiscal year (FY) 2020-21. The austerity measures are part of a package of reforms tied to the $12 billion IMF loan agreed in November 2016.

Egyptians are also anticipating an official announcement regarding cuts to fuel subsidies in the upcoming FY. The draft budget released in April revealed government plans to slash government fuel subsidies by 26%.