Egypt reduced energy subsidy allocations to about 120 billion pounds ($2.28 billion) in the draft budget for the 2026/2027 fiscal year, down from about 150 billion pounds ($2.85 billion) in the current fiscal year. According to According to the Ministry of Finance statement on Saturday, April 11.
The approximately 20 percent reduction comes as part of ongoing efforts to rationalize public spending and improve energy efficiency.
Finance Minister Ahmed Kouchuk said that the new allocations are Designed To support stable energy supplies while encouraging a shift towards more sustainable sources, including renewable energy.
It is expected that a large portion of the support will go about The electricity sector, along with financing to maintain fuel availability and support ongoing infrastructure projects.
These changes are part of Egypt’s broader economic reform programme, which includes gradually reducing non-targeted subsidies and redirecting resources towards more efficient spending.
Under the Extended Fund Facility worth US$8 billion (424.9 billion Egyptian pounds). deal Egypt, in cooperation with the International Monetary Fund, is working to reduce energy subsidies as part of broader efforts to control public finances.
Officials say the reforms aim to reduces Pressure on public finances while creating space for targeted social support programs and investment in key sectors.
This step comes at a time when Egypt continues to achieve a balance between rising energy costs and the need to ensure stable supplies and support economic activity, especially amid the continuing fluctuations in global energy markets, especially middle Global energy fluctuations and escalating regional tensions affecting major shipping routes and fuel costs.