Egypt hikes electricity prices by up to 50%

Egypt has raised electricity prices for households by up to 50%, following an agreement with the International Monetary Fund (IMF) to phase out subsidies, Reuters reports citing two unnamed government sources. The increases ranging from 14.45% to 50% took effect Saturday for prepaid meters and will apply to regular meters starting October 1. They were originally scheduled for earlier this summer, but were delayed due to power shortages caused by a spike in the demand for electricity for cooling. To keep the grid functional, Egypt resorted to load-shedding, saying it needed to import $1.18 billion worth of natural gas and fuel oil to end the unpopular cuts.

The North African country generates most of its electricity from natural gas. Egypt had committed to steep reductions in energy subsidies as part of its $8 billion IMF loan agreement, but has repeatedly postponed electricity price increases due to economic pressures.