Egypt has introduced sweeping temporary measures to curb energy consumption as soaring fuel prices—triggered by the ongoing Iran war—place mounting pressure on its economy.
Under new government directives, shops, restaurants, and cafes must close by 9:00 PM each night for a month starting Saturday.
The restrictions are part of a broader strategy to reduce electricity and fuel use amid supply disruptions linked to instability in the Strait of Hormuz, through which a significant portion of the world’s oil and liquefied natural gas typically flows.
Prime Minister Mostafa Madbouly confirmed that Egypt’s monthly petrol bill has surged dramatically, rising from January levels to approximately $2.5 billion in March. The spike highlights the country’s vulnerability to external shocks, particularly due to its reliance on imported fuel.
In addition to early closures, authorities have ordered the dimming of street lights and roadside advertisements.
Many public sector employees will also work from home one day a week throughout April to reduce commuting-related fuel consumption. However, essential services—including hospitals, schools, and industrial facilities—are exempt from these measures.
Tourism, a vital pillar of Egypt’s economy contributing roughly 10 percent of GDP, will remain largely unaffected. Hotels and tourist attractions are exempt from early closing rules to ensure minimal disruption for visitors.
Several prominent Cairo hotels have already taken precautionary steps, including installing backup generators to guard against potential power outages.
The current crisis stems from escalating tensions in the Middle East, which have severely disrupted shipping through the Strait of Hormuz.
Since Iran began threatening vessels in the region, most international maritime traffic has halted, causing global oil prices to surge. The chokepoint typically handles about 20 percent of the world’s oil and gas supply, making any disruption highly consequential.
Global concerns have grown as countries scramble to secure alternative energy routes and stabilize markets. Donald Trump has publicly criticized allied nations for their reluctance to assist in securing safe passage for commercial ships through the strait.
Despite Egypt not being directly involved in the conflict, its economic exposure has forced swift policy action.
The government has already increased fuel prices domestically and raised public transport fares to offset rising import costs. Additionally, energy-intensive state projects are being scaled back, and fuel allowances for government vehicles have been reduced by nearly one-third.
The ripple effects of the crisis extend beyond Egypt. Regional governments, including Ethiopia, have also begun implementing fuel-saving strategies, such as placing non-essential public workers on leave.
Economists warn that if the disruption continues, the consequences could extend beyond energy markets, potentially affecting food prices, medical supplies, and broader inflation levels.
For Egypt, balancing immediate economic stability with long-term resilience will remain a critical challenge as the situation unfolds.