Egypt has raised electricity prices for higher-use residential consumers and commercial users starting in April, the electricity ministry said on Saturday, citing a severe global energy crisis linked to the war in the Gulf region.
The move is the latest in a series of steps by the government to curb energy use and contain mounting fiscal pressure as higher import costs strain the finances of the Arab world’s most populous country.
In a statement, the ministry said lower-consumption households would be shielded from the increases, which would be limited to higher-use segments and commercial users in an effort to maintain electricity supplies across the residential, commercial and industrial sectors.
It said electricity prices for residential consumption bands of up to 2,000 kilowatt-hours per month would remain unchanged, while tariffs for higher residential brackets would rise by an average of 16%.
Commercial electricity prices across all brackets would increase by an average of about 20%, it added.
Prime Minister Mostafa Madbouly said in March that Egypt’s energy import bill had more than doubled since the war involving the United States, Israel and Iran began, forcing the government to raise fuel prices, increase public transport fares and slow some state projects to ease pressure on public finances.
Egypt began implementing measures in March to rationalise energy consumption, including earlier closing hours for commercial venues, as global oil prices rose amid the conflict.
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The country was already grappling with heavy debt burdens, with interest payments consuming about half of government spending this fiscal year, while inflation has remained in double digits after peaking at 38% in September 2023.
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