Egypt Raises Electricity Prices Due To Global Energy Crisis

[Abdulwahid]

Egypt has increased electricity prices for high-use residential and commercial consumers starting in April, according to the electricity ministry in Riyadh. The government said the decision was made because of the serious global energy crisis linked to the ongoing war in the Gulf region, which has increased the cost of energy imports.

This new price increase is part of the government's efforts to reduce energy consumption and manage growing financial pressure. Egypt, which is the most populous country in the Arab world, is facing rising import costs, and the government is trying to control spending and protect the country's economy from further damage.

The electricity ministry explained that low-income and low-consumption households will not be affected by the increase. The government wants to protect ordinary citizens while focusing the price increase on higher electricity users and commercial businesses to ensure stable power supply across residential, commercial, and industrial sectors.

According to the ministry, households that use up to 2,000 kilowatt-hours of electricity per month will continue to pay the same price. However, households that use more electricity will see an average increase of 16 percent, while commercial electricity users will face an average increase of about 20 percent.

Prime Minister Mostafa Madbouly had earlier explained in March that Egypt's energy import bill has more than doubled since the war involving the United States, Israel, and Iran started. As a result, the government has also increased fuel prices, raised public transport fares, and slowed down some government projects to reduce financial pressure.

Egypt has already introduced measures to control energy use, such as reducing business operating hours and encouraging energy saving across the country. The country is also dealing with heavy debt and high inflation, with interest payments taking about half of government spending and inflation remaining high after reaching 38 percent in September 2023.

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