Egypt Hit by Surge in Energy Costs as Global Prices Spike

Rising fuel imports strain budget, prompting urgent government measures Egypt is grappling with a sharp surge in energy costs, as its import bill has more than doubled following the escalation of the US-Israeli war involving Iran. Prime Minister Mostafa Madbouly said the country’s energy expenses have risen by up to two-and-a-half times compared to pre-war levels, with the monthly natural gas bill alone jumping from roughly $560 million to $1.65 billion for the same volumes. The increase mirrors a broader global trend, with oil prices surging from $69 per barrel to over $108, while diesel and liquefied petroleum gas have also recorded steep gains. The spike is placing growing pressure on Egypt’s public finances. Heavily reliant on fuel imports—particularly natural gas—Egypt remains highly exposed to global market shocks, especially as domestic production continues to decline after peaking in 2021. Analysts warn that rising oil prices could push government spending up by as much as 0.55% of GDP, further tightening fiscal conditions. In response, authorities have introduced a series of measures aimed at reducing energy consumption, including fuel price increases and earlier closing hours for businesses. From March 28, commercial venues will shut by 9 p.m. for at least one month. The government is also considering implementing remote working for one or two days per week across both public and private sectors to ease demand and mitigate the impact of rising energy costs. Source: Newstimehub Egypt Energy Crisis Oil Prices Economy Middle East