Analysts expected that the Egyptian government will reduce the prices of natural gas to factories during the first quarter of the year amid increasing supply after achieving self-sufficiency and lowering international gas prices to levels that are not encouraging for export.

Egypt sells gas to cement factories, at a price of six dollars per million thermal units, and at a price of 5.5 dollars for the iron and steel, aluminum, copper and ceramics industries.

The Egyptian Cabinet decided last October to review the prices of selling natural gas to factories every six months so that they are not less than the average cost of gas production and in light of global price changes.

The head of research at investment bank Pharos Radwa Al-Swaify predicted that gas prices will decrease for factories during the first quarter.

Egypt's natural gas production exceeds seven billion cubic feet per day and its domestic consumption is between 6.2 and 6.4 billion cubic feet per day.

"The supply of gas is very abundant in Egypt now and the prices in export markets are not attractive, so the decision to reduce gas prices locally will make sense," said Mohamed Abu Basha, an Egyptian economist at EFG Hermes.

Amr Al-Alfi, head of research in Shuaa Securities, agreed with him, who said, "Reducing energy prices for industrial companies in Egypt has become imperative to revitalize this vital sector to help sustain economic growth rates ... I expect the reduction during the first half of this year."