Cairo is hiking power prices for the year from 1 July. Hikes of 20-30% for average users will hit them hard in the pocket. But the rises are the final stage of adjustment to the country’s end-2016 devaluation. In dollar terms most prices remain below 2015-16 levels, even after the latest hikes (see table).

Axing subsidies is key to end-2016 reforms agreed with the IMF, unlocking $12bn in loans, but with the Egyptian pound losing 50% (MEES, 18 November 2016).

State firm EGPC pays for...