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Egypt Hikes Electricity Prices 20% for Businesses Amid Global Energy Crisis

Egypt has raised electricity prices for commercial users by an average of 20 percent and for high-consuming residential households by 16 percent, effective this April. The government blames an "acute and unprecedented" global energy crisis exacerbated by the regional conflict involving Iran, Israel, and the United States. In response, authorities have activated new natural gas wells and announced austerity measures, including cutting fuel for government vehicles and reducing public lighting. The moves aim to curb reliance on imports after the cutoff of Israeli gas, which previously supplied nearly 20% of Egypt's needs.

Key Points: Egypt Raises Electricity Prices Due to Global Energy Crisis

  • Commercial electricity prices rise ~20%
  • High residential users see 16% hike
  • Government enacts austerity like reduced street lighting
  • New gas wells activated to boost domestic output
  • Israeli gas supply cut off since February
2 min read

Egypt raises electricity prices amid global energy crisis

Egypt increases commercial electricity prices by 20% and residential rates for high consumers, citing the Gulf conflict's impact on energy supplies.

"acute and unprecedented global crisis - Egyptian Ministry of Electricity"

Cairo, April 5

Egypt's Ministry of Electricity and Renewable Energy announced price hikes for commercial and residential electricity consumption effective this April, citing the global energy crisis triggered by the US-Israeli conflict with Iran.

In a statement issued late Saturday (local time), the ministry said that the current "acute and unprecedented global crisis" across all energy resources, caused by the ongoing war in the Gulf region, has necessitated price increases for certain commercial and residential consumption tiers starting this month, reports Xinhua news agency.

According to the statement, commercial consumption prices across various brackets will rise by an average of approximately 20 per cent.

For residential consumption, prices for tiers consuming 2,000 kWh per month and above have been raised by an average of 16 per cent, while rates for all tiers below the 2,000 kWh threshold will remain unchanged.

This decision followed a series of measures taken by the Egyptian government in response to the global energy situation.

Austerity measures announced in late March included activating remote work systems, slowing the implementation of fuel-intensive mega-projects, and cutting fuel allocations for all government vehicles by 30 per cent.

Additional measures included cutting business hours for shops, restaurants, cafes and malls as well as reducing street lighting and billboard illumination by one-third.

Earlier on April 3, Egypt brought four new natural gas wells online in the Mediterranean Sea and the Western Desert as part of efforts to boost domestic energy output and curb its growing reliance on imports.

The wells, located in the offshore West Burullus field in the Mediterranean and the Khalda fields in the Western Desert, are expected to produce a combined 120 million cubic feet of gas per day, the Ministry of Petroleum and Mineral Resources said on Friday.

The additions come as Egypt grapples with soaring energy costs stemming from the regional conflict involving Iran, Israel, and the United States. Israeli natural gas, which typically accounts for nearly 20 per cent of Egypt's total consumption, has been cut off since US and Israeli strikes on Iran began on February 28.

The government has been seeking to increase oil and gas output after a decline in natural gas production in recent years. In August 2025, Prime Minister Mostafa Madbouly said Egypt's current production stands at 4.1 billion cubic feet per day, with plans to reach 6.6 billion cubic feet per day by 2027.

The ministry said Egypt plans to drill more than 100 exploratory wells in 2026 to secure new energy reserves.

- IANS

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Reader Comments

P
Priya S
A 20% hike for commercial use is massive! It will directly impact the cost of goods and services. Small businesses will suffer the most. The government's austerity measures like cutting shop hours seem like a band-aid solution. The focus should be on long-term energy independence.
R
Rohit P
At least they are protecting lower residential consumers by keeping prices unchanged below 2000 kWh. That's a sensible, pro-poor move. Many middle-class families in Egypt will still feel the pinch though. Hope our own power distribution companies are watching and learning.
S
Sarah B
The article mentions new gas wells coming online. That's the real story—countries need to invest in their own resources. Relying on imports, especially from a volatile region, is a strategic vulnerability. Egypt's plan to drill 100+ wells is a step in the right direction.
V
Vikram M
Cutting street lighting by one-third? That seems like it could impact public safety. While I understand the need for austerity, some measures might have unintended consequences. The remote work push is a good idea we should adopt more in India to save on commuting fuel.
K
Karthik V
It's a tough situation. Global politics directly hits the common man's pocket. When will world leaders understand that war only brings suffering? Egypt is just one example. We need more diplomacy, less conflict. Jai Hind.

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