A source from the Egyptian Natural Gas Holding Company (EGAS) stated to Egypt Oil&Gas that the Ministry of Electricity and Renewable Energy’s debt to the Ministry of Petroleum and Mineral Resources has hit EGP 54b in early February 2017 from an amount of EGP 1b in January 2017.

The source added that the Egyptian General Petroleum Corporation (EGPC) along with EGAS are supplying the Ministry of Electricity and the electricity generating power plants with petroleum products, including mazut and gas, worth EGP 2b on a monthly basis of which the ministry of Electricity repays only EGP 0.5b/m.

In related news, the ministry of electricity had presented a memorandum to the Cabinet asking to increase allocations after the EGP devaluation. The memorandum had explained the financial burdens on the ministry as it included a study of the economic effects of the subsidy value with the increase USD exchange rate and the inflation of fuel prices, as well as the value-added tax (VAT), and banks’ lending prices. Sources at the Ministry had stated that the memorandum added that the kilowatt production cost per hour ranges reached between EGP 0.9 and EGP 1, after the EGP devaluation and increase in oil prices.