Egypt’s Ministry of Electricity and Renewable Energy has announced price increases for commercial and residential electricity consumption starting this April. The ministry attributed the price hikes to the global energy crisis triggered by the US-Israeli conflict with Iran. Commercial consumption prices are set to rise by an average of around 20 per cent across various brackets.
For residential consumption, prices for tiers consuming 2,000 kWh per month and above will see an average increase of 16 per cent. However, rates for all tiers below the 2,000 kWh threshold will remain unchanged. These adjustments follow a series of measures implemented by the Egyptian government in response to the ongoing global energy situation.
In response to the energy crisis, Egypt has taken several austerity measures, including activating remote work systems, slowing down fuel-intensive mega-projects, and reducing fuel allocations for government vehicles by 30 per cent. Additional measures involve cutting business hours for various establishments and reducing street lighting and billboard illumination by one-third.
Egypt recently launched four new natural gas wells in the Mediterranean Sea and the Western Desert to enhance domestic energy production and reduce reliance on imports. These wells, located in the offshore West Burullus field in the Mediterranean and the Khalda fields in the Western Desert, are expected to collectively produce 120 million cubic feet of gas per day. The country’s efforts to boost energy output come amidst escalating energy costs due to the regional conflict involving Iran, Israel, and the United States.
The government aims to increase oil and gas production to address the decline in natural gas output in recent years. Prime Minister Mostafa Madbouly stated that Egypt’s current gas production stands at 4.1 billion cubic feet per day, with plans to reach 6.6 billion cubic feet per day by 2027. Egypt also intends to drill over 100 exploratory wells in 2026 to secure new energy reserves.
