Egypt will impose earlier closing hours for shops and restaurants starting March 28 and is considering partial remote work for public employees, Prime Minister Mostafa Madbouly said Wednesday, as surging energy import costs strain state finances.
The measures, set to run for an initial month, come as the country faces a sharp rise in fuel prices linked to the US-Israeli war on Iran, which has disrupted regional energy supplies and driven up global markets.
“We are facing a truly exceptional global crisis,” Madbouly said at a news conference, noting that Egypt’s monthly natural gas import bill has jumped to $1.65 billion from about $560 million before the conflict — an increase of roughly $1.1 billion.
Overall, Egypt’s energy import costs have risen to between two and two-and-a-half times prewar levels, effectively doubling the country’s monthly bill and adding pressure on foreign currency reserves.
Under the new rules, shops, malls and restaurants must close by 9 pm on weekdays and 10 pm on Thursdays and Fridays. The government will also suspend lighting for roadside ads and further reduce street lighting on major roads and in public squares.
Authorities plan to delay diesel-intensive infrastructure projects and are studying a proposal to allow some public-sector employees to work from home one or two days a week. “Productive” sectors such as industry and health care will be exempt, Madbouly said.
Madbouly said recent domestic fuel price hikes — of up to 30% earlier this month — were based on oil at $93 per barrel, but current levels make it unsustainable to rely on price increases alone, underscoring the need to curb consumption.
Energy prices have climbed sharply. Madbouly said crude rose from $69 per barrel before the conflict to $93 when Egypt last adjusted domestic fuel prices, before easing to $87. Prices have since jumped to $108.5 following reported attacks on Iranian oil facilities.
He warned prices could reach $150 to $200 per barrel if the conflict escalates. Even at $105, crude would still be about 50% higher than prewar levels.
“The duration of the war remains the main uncertainty,” he said, adding it could last several months or extend into late 2026.
Supply disruptions have worsened the crisis. Natural gas imports from Israel — which typically cover about 16% of Egypt’s winter demand — have nearly halted after Israel shut down the Leviathan and Tamar offshore fields following joint strikes with the United States on Iran on Feb. 28.
The loss of about 1.1 billion cubic feet of gas per day has forced Egypt to turn to more expensive liquefied natural gas imports, with global LNG prices rising more than 60% amid the conflict and shipping disruptions, including through the Strait of Hormuz.
Egypt has faced recurring energy shortages since 2023, when declining gas output and rising demand led to daily blackouts lasting one to three hours. The government later secured more than $1 billion in fuel imports and halted the cuts in late 2024.
Analysts say the new measures aim to reduce consumption and avoid more disruptive steps such as widespread rolling blackouts or deeper subsidy cuts, both of which could fuel already high inflation.
