Egypt Imposes Energy Rationing as Iran War Drives Costs Surge

Egypt has announced emergency energy rationing measures as soaring global fuel prices and supply disruptions linked to the U.S.-Israeli war with Iran place severe strain on the country’s economy.

Egyptian Prime Minister Mostafa Madbouly unveiled a set of urgent measures on March 18, 2026, aimed at reducing energy consumption and stabilizing the national budget.

The الأزمة stems from disruptions in global energy markets following the outbreak of war on February 28. Egypt, a net energy importer heavily dependent on natural gas for electricity generation, has been particularly exposed to supply shocks.

Global oil prices have surged, with Brent crude exceeding $115 per barrel, while liquefied natural gas (LNG) prices have also spiked sharply. The country’s monthly natural gas import bill has risen from roughly $560 million before the conflict to about $1.65 billion for the same volumes.

The crisis has been compounded by disruptions to regional energy flows, including reduced pipeline gas supplies and risks to tanker routes through the Strait of Hormuz, a key artery for global energy trade.

Egypt had previously relied on imports, including significant volumes from Israel, making it vulnerable to geopolitical shocks. To compensate, Cairo has turned to more expensive spot LNG cargoes, further increasing costs.

The government’s measures, set to take effect on March 28 for an initial period of one month, aim to curb non-essential energy use:

• Commercial establishments such as shops, malls, restaurants, and cafes must close by 9 p.m. on weekdays and 10 p.m. on Thursdays and Fridays.
• Public lighting will be reduced to minimum safe levels, with illuminated billboards and roadside advertisements switched off.
• Government offices will close earlier, with reduced energy use and limits on non-essential travel.

Authorities are also considering implementing remote work policies for one or two days per week in the public sector, while encouraging similar steps in private companies.

The measures follow earlier fuel price increases introduced in March, including hikes of around 15% for gasoline, 17% for diesel, and 22% for cooking gas. These steps have added to the financial burden on households already facing inflation and economic hardship.

Despite the restrictions, the government has emphasized that there are no planned electricity outages or gas shortages for households and critical industries, prioritizing essential supply while limiting discretionary consumption.

Madbouly described the measures as temporary and linked directly to the ongoing conflict, stating they would be lifted once conditions stabilize.