Egypt is grappling with a sharp surge in energy import costs, with its bill more than doubling since the outbreak of the US-Israeli war involving Iran, Prime Minister Mostafa Madbouly has announced.
Speaking at a press briefing, Madbouly said energy expenses have risen by up to two-and-a-half times compared to pre-war levels. The monthly cost of natural gas alone has nearly tripled, climbing from around $560 million to approximately $1.65 billion for the same import volumes.
The increase reflects a broader global spike in fuel prices, with oil rising from $69 per barrel to over $108, alongside sharp increases in diesel and liquefied petroleum gas. These developments are placing significant pressure on Egypt’s already strained public finances.
Heavily reliant on imported fuel—particularly natural gas—Egypt remains highly exposed to global market volatility, especially as domestic production has declined since its peak in 2021.
Analysts warn that sustained high energy prices could raise government spending by up to 0.55% of GDP, further tightening fiscal conditions.
In response, authorities have introduced a series of measures aimed at reducing consumption, including fuel price hikes and earlier closing hours for commercial venues. From March 28, shops, restaurants, and malls will close by 9 p.m. for at least one month.
The government is also considering implementing remote working for one to two days per week across both public and private sectors to ease energy demand and mitigate the impact of rising costs.
Source: Newstimehub
