Egypt announced a new set of emergency energy-saving measures, ordering stores, malls, restaurants and cafes to close early, reducing public lighting, and setting shorter office working hours for government employees as the country faces rising energy costs linked to the regional conflict.
Prime Minister Mostafa Madbouly said on March 18 that commercial establishments will close at 9 p.m. for a month starting on March 28, with the closure extended on Fridays and Saturdays until 10 p.m. Street lighting will be reduced to a minimum, while roadside advertising lights will be turned off. Government offices will also close their doors at six in the evening after the Eid al-Fitr holiday, with some administrative work continuing remotely.
Egypt faces an energy crisis
These measures come at a time when Egypt is facing a sharp jump in its energy import bill. According to Madbouly, the country’s monthly natural gas import costs rose from $560 million before the outbreak of the regional war to $1.65 billion for the same size. He also said that oil prices rose from US$69 per barrel before the conflict to US$108.5, while diesel and LPG also saw sharp increases.
In practice, this has led Egypt to pay nearly double, and in some cases up to 2.5 times, its previous monthly energy bill, adding further pressure to an economy already suffering from debt, inflation and dependence on imported fuel. Reuters also reported that Egypt’s vulnerability has been exacerbated by a decline in domestic gas production in recent years, making it more vulnerable to regional supply shocks and global price fluctuations.
Madbouly said that the government was preparing for the possibility of a long-term regional shock and was now trying to limit the repercussions without causing new shortages or sparking another wave of inflation. He said that diesel-intensive projects will be postponed for a month, with a possible extension depending on the development of the situation. Meanwhile, the government is considering whether some public sector employees could work from home one or two days a week, although essential services will remain fully on-site.
The announcement represents a return to state-led environmental conservation measures that many Egyptians have become familiar with during periods of economic stress. But this time, the motivation is not limited to internal pressures alone. It is also a broader regional war and the risk that continued escalation could lead to higher energy prices. Madbouly warned that some forecasts now indicate that the price of oil may rise to between $150 and $200 per barrel if the conflict worsens.
For households and businesses, the immediate impact will be felt in daily routines, especially as Eid approaches. For the government, the challenge is greater: how to limit consumption, protect foreign currency reserves, and keep the economy performing at a time when absorbing external shocks is becoming more difficult.