Daijiworld Media Network - Cairo

Cairo, Apr 5: Egypt has announced an increase in electricity prices for both commercial establishments and high-consumption households, effective this April, as the country grapples with mounting global energy challenges.

In a statement, the Ministry of Electricity and Renewable Energy attributed the hike to an “unprecedented global crisis” affecting energy supplies, driven by the ongoing regional conflict involving the United States, Israel, and Iran.

Under the revised structure, commercial electricity tariffs will rise by an average of 20 percent across various usage brackets. For residential consumers, only those using 2,000 kWh or more per month will see an increase—averaging 16 percent—while lower consumption tiers will remain unaffected.

The price adjustment comes alongside a broader set of austerity measures introduced by the government in late March. These include expanded remote work policies, delays in fuel-intensive infrastructure projects, and a 30 percent reduction in fuel allocation for government vehicles. Authorities have also curtailed operating hours for shops, restaurants, and malls, and reduced street lighting and advertising illumination by one-third to conserve energy.

In parallel, Egypt is working to boost domestic production. On April 3, four new natural gas wells were brought online in the Mediterranean Sea and the Western Desert. These include sites in the West Burullus field and the Khalda fields, with a combined output expected to reach 120 million cubic feet per day.

The push for increased local production comes as Egypt faces supply disruptions. Natural gas imports from Israel—typically accounting for about 20 percent of the country’s consumption—have been halted since the escalation of military actions in late February.

Prime Minister Mostafa Madbouly has previously stated that Egypt aims to raise its daily gas production from 4.1 billion cubic feet to 6.6 billion cubic feet by 2027. As part of this strategy, the government plans to drill over 100 exploratory wells in 2026 to secure new energy reserves and reduce dependence on imports.

Officials say these combined measures are intended to stabilise the energy sector and manage the economic impact of rising global fuel costs amid ongoing geopolitical tensions.