Egypt Energy Import Costs Double Amid Global Price Rise

The energy import bill for Egypt has more than doubled since the outbreak of the conflict involving the United States, Israel, and Iran, Prime Minister Mostafa Madbouly announced on Wednesday. The surge in global fuel prices has placed significant pressure on the nation's finances, with energy import costs rising between two and two-and-a-half times compared to pre-war levels.

Madbouly noted that the monthly bill for natural gas imports has nearly tripled, increasing from approximately $560 million before the conflict to roughly $1.65 billion for the same volumes today.

"To keep factories operating and producing, this is the cost of gas alone," he said.

Global oil prices have climbed from $69 a barrel before the war to approximately $108.50 currently. Other fuel types have seen even steeper increases; diesel rose from $665 per tonne to $1,604 per tonne, while liquefied petroleum gas prices moved from $510 per tonne to $730 per tonne.

The country remains heavily reliant on fuel imports, particularly natural gas, as domestic production has declined since peaking in 2021. This exposure has left the economy vulnerable to global shocks and supply disruptions, such as the closure of the Strait of Hormuz. According to the Institute of International Finance, the rising cost of oil could increase government expenditures by between 0.2% and 0.55% of the country's GDP.

In response to these challenges, the government raised domestic fuel prices this month to reduce the burden on a budget already strained by high debt and inflation. Interest payments currently consume about half of all government spending for the fiscal year.

To further conserve energy, Madbouly announced that shops, malls, cafes, and restaurants will be required to close by 9 p.m. local time starting March 28. The government is also considering a plan to implement remote work for one or two days per week in both the public and private sectors to help manage national energy demand.