(AFP File Photo)
The government has raised gas prices for cement factories to $8 per million British Thermal Units (BTUs) compared to $6 previously, while fuel oil increased from EGP 1,500 to EGP 2,250 per tonne.
An official source from a cement company who requested anonymity anticipated cement prices to increase in the coming days due to higher production costs.
“Energy represents 60% of cement production costs and any increase in energy prices have a direct influence on final prices,” said the source, “We do not yet know the impact of increased energy prices on consumers as cement prices are also affected by supply and demand.”
“Gas is generally not available and we are experiencing a large and persistent deficit in its supply which has reduced our production capabilities,” he said.
He added that the problem faced by cement factories is not so much the price as its availability.
A number of cement companies operating in Egypt are looking to use coal as an alternative source of energy this year.
The source ruled out these companies’ resorting to importing gas at this time due to high prices for the process, valuing up to $ 14m BTUs.
