Tarek Kabil, Minister of Trade and Industry, stated that the government is studying a new pricing formula for natural gas supplied to all industries. Kabil noted that the formula would rely on a variable component linked to the cost of the production of each industry. He mentioned that the Ministry has a target to apply this pricing formula by September 2016, which will have a base price of USD4.5/mmbtu. The Minister also stated that the decision would be based on whether the government’s budget could accommodate the reduction in gas prices. For fertiliser producers, we are already assuming a variable gas pricing formula to be applied that would set a base price of USD4.5/mmbtu and include a variable pricing portion linked to international urea prices. As for steel producers, we remain skeptical of the government's decision to cut gas prices from USD7/mmbtu to USD4.5/mmbtu, given earlier decisions for a cut not materialising. Nonetheless, we see significant upside potential for steel companies if such a decision is implemented and upheld. (Al Borsa, Ahmed Hazem Maher)