Egypt faces $1.1B monthly energy surge as global crisis intensifies

CAIRO - 18 March 2026: Egypt’s monthly natural gas import bill has surged from $560 million to $1.65 billion, reflecting a sharp $1.1 billion increase as the government works to secure electricity supply and maintain industrial operations, Prime Minister Mostafa Madbouly said.

Speaking at a press conference, Madbouly noted that global energy markets have seen significant volatility since the outbreak of the conflict. Oil prices climbed from $69 per barrel before the war to $108.5, with forecasts indicating they could rise further to between $150 and $200 if tensions escalate. Diesel prices have also jumped from $665 per ton to $1,604, while butane increased from $510 to around $720–730 per ton.

These developments have pushed Egypt’s monthly energy bill to nearly double, and in some cases reach two and a half times its previous level, placing mounting pressure on public finances. Madbouly acknowledged that earlier pricing decisions were based on assumptions of $93 per barrel, but current market conditions make it unsustainable to rely solely on price adjustments.

He reiterated Egypt’s firm rejection of the ongoing war, warning of its serious economic and geopolitical consequences, and confirmed the country’s condemnation of attacks on Arab nations. Egypt, he said, continues to advocate for a ceasefire and a political resolution, stressing that the conflict cannot be settled militarily.

Since the onset of the crisis, the government has been closely tracking its economic impact through a central crisis committee that meets regularly. However, uncertainty over the duration of the conflict, whether weeks or months, remains a key challenge with broad implications for global markets.

Madbouly emphasized that the world is facing a genuine global crisis marked by rising inflation and increasing fuel and commodity prices, even in advanced economies. In response, Egypt is studying a range of measures to mitigate the impact on citizens while maintaining transparency around government actions.

As part of its response, the government is shifting focus toward consumption rationalization alongside other measures. Citizens are being encouraged to reduce electricity use, limit unnecessary transportation, and contribute to lowering overall energy demand.

At the same time, the government has begun implementing spending controls, including postponing selected expenditures for two months to build financial buffers. Additional measures include reducing street lighting, halting illuminated advertisements, and shortening working hours in government offices, with a transition to partial remote work.

Commercial activity will also be affected, with shops, malls, restaurants, and cafés required to close earlier starting March 28, as part of efforts to reduce electricity consumption. The government is also considering expanding remote work across sectors, excluding critical industries.

Madbouly stressed that these steps are being introduced gradually to avoid disrupting economic activity, with the priority being to contain costs without triggering further inflationary pressures. He reaffirmed that the government does not aim to burden citizens but is responding to an exceptional global crisis that demands difficult decisions.

He concluded by noting that Egypt’s approach has been recognized internationally for its proactive handling of the situation, emphasizing that the government’s primary goal is to safeguard economic stability, sustain production, and protect citizens’ livelihoods amid unprecedented global energy challenges.