Egypt’s Energy Import Bill Soars Amid Rising Global Fuel Prices and War Impact

Egypt’s energy import costs have more than doubled due to rising global fuel prices amid the US-Israeli war with Iran, with its natural gas bill nearly tripling. The government is increasing fuel prices and introducing measures like early business closures and possible remote work to reduce energy demand and ease financial pressure.

Egypt’s energy import bill has surged dramatically since the outbreak of the US-Israeli war with Iran, more than doubling and placing increasing strain on the country’s finances as global fuel prices continue to climb. Prime Minister Mostafa Madbouly revealed during a press conference on Wednesday that the cost of energy imports has risen by between two and two-and-a-half times compared to levels before the conflict began.
He highlighted that Egypt’s monthly natural gas import bill alone has nearly tripled, jumping from about $560 million before the war to approximately $1.65 billion for the same volume of gas. Emphasising the impact on the economy, Madbouly noted that this figure represents only the cost of gas required to keep factories running and production ongoing, underscoring the heavy burden on the الدولة’s industrial sector.
The sharp increase in costs is largely driven by rising global fuel prices during the conflict. Crude oil prices have climbed significantly, moving from around $69 per barrel before the war to about $108.50. Diesel prices, which are critical for transportation and industrial activities, have also surged steeply from $665 per tonne to $1,604 per tonne. Meanwhile, liquefied petroleum gas prices rose from $510 per tonne to $730 per tonne, further adding to the country’s import expenses.
Egypt remains highly dependent on imported fuel, particularly natural gas, as domestic production has been declining steadily since reaching its peak in 2021. This dependency has made the country especially vulnerable to global price shocks and supply disruptions. Analysts from the Institute of International Finance estimate that the increased oil costs could raise government expenditures by between 0.2% and 0.55% of Egypt’s GDP, adding further pressure to an already strained budget.
In response to the growing financial burden, the government has taken steps to reduce energy consumption and manage demand. Fuel prices across a range of products have already been increased this month in an effort to ease pressure on public finances. The situation has been worsened by disruptions in Middle Eastern oil supply, particularly following Iran’s closure of the strategic Strait of Hormuz, a key route for global energy shipments.
To further curb energy use, Madbouly announced new measures that will take effect soon. Commercial establishments including shops, malls, cafes, and restaurants will be required to close earlier than usual, with a 9 p.m. shutdown time starting March 28 and expected to last for at least one month. Additionally, the government is considering implementing remote working policies for one or two days per week across both public and private sectors, aiming to reduce overall energy demand and limit the economic impact of the ongoing crisis.
These measures reflect Egypt’s محاولة to balance sustaining economic activity while coping with rising energy costs and external pressures caused by the evolving geopolitical situation.