The Egyptian government will increase electricity prices from 17 to 30% based on consumption from 1 July 2020. The country has extended the plan to end electricity subsidies until the 2024-2025 fiscal year, as Egypt entered a new reform programme supported by the International Monetary Fund (IMF) in June 2020.
In 2016, Egypt entered an IMF reform programme in a bid to revive its economy after the 2011 revolution. As part of the US$12bn deal, Egypt had to remove all subsidies, adjust the price of oil products to international levels, and adapt electricity tariffs to long-term marginal costs. From 2016, the country decided to end fuel subsidies within three years and to halve electricity subsidies by 2020. The government also increased electricity tariffs for both industry and households by 15% over the 2019-2020 fiscal year (starting in July 2019). The IMF agreement ended in July 2019, but the Government pledged to continue reducing energy subsidies until 2021-2022.
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