CAIRO, Mar 19 – Egypt’s energy import bill has risen sharply, with the country now spending about $1.65 billion each month on natural gas, up from roughly $560 million before the outbreak of the U.S.-Israeli war with Iran.
Prime Minister Mostafa Madbouly said the total energy bill has increased by between two and two-and-a-half times, as global fuel prices continue to climb.
Crude oil prices rose from around $69 per barrel before the conflict to about $108.50. Diesel prices also jumped significantly, from $665 per tonne to $1,604, while liquefied petroleum gas increased from about $510 to around $730 per tonne.
The increase is adding pressure to Egypt’s finances, especially as the country depends heavily on imported fuel and local gas production has declined since peaking in 2021. Estimates suggest the higher oil costs alone could push government spending up by between 0.2% and 0.55% of GDP.
In response, the government has started taking steps to reduce energy use. Shops, malls, restaurants and cafés will close earlier, from 9 p.m., for at least one month starting late March.
Officials are also considering remote work for one or two days each week in both the public and private sectors. In addition, street lighting will be reduced and illuminated advertising paused to cut electricity consumption.
The situation adds to existing economic pressures. Egypt is already dealing with high debt, with interest payments taking up nearly half of government spending, while inflation remains elevated after reaching 38% in September 2023.
Authorities say they are continuing to monitor the situation closely as uncertainty around the duration of the conflict remains.
