Egypt implements "temporary" economic measures to control markets and secure energy supplies after raising fuel prices
The Egyptian government announced today (Tuesday) a package of social, economic and precautionary measures aimed at maintaining market stability and ensuring the continuity of energy supplies, in addition to protecting the groups most affected by global fluctuations, in light of the rapid military developments in the region and the accompanying sharp disturbances in global energy markets and significant increases in the prices of oil and petroleum products. The Egyptian government has intensified its efforts to monitor the repercussions of these changes on the local economy.
Fuel price adjustments in Egypt
Egypt's announcement of the measures came just hours after the Egyptian government announced price hikes for several petroleum products and natural gas for vehicles, effective Tuesday. According to the decision, the price of 95-octane gasoline rose to 24 Egyptian pounds per liter from 21 pounds, while 92-octane gasoline increased to 22.25 pounds from 19.25 pounds. 80-octane gasoline also rose to 20.75 pounds per liter, compared to 17.75 pounds previously. The increase also included diesel fuel, which rose to 20.5 pounds per liter from 17.5 pounds.
Gas cylinder prices rise
The increases also extended to domestic gas cylinders, where the price of a 12.5 kg cylinder rose from 225 to 275 pounds, while the price of a 25 kg cylinder increased from 450 to 550 pounds.
Rationalizing government spending
The Egyptian government’s measures included rationalizing spending within government agencies and their affiliated bodies, including rationalizing some energy-intensive activities, which will contribute to reducing fuel and electricity consumption in the coming period, along with reviewing the operating patterns in a number of projects and services that rely heavily on diesel, fuel oil and gasoline, and adjusting the pace of work in them in a way that achieves a tangible reduction in consumption, without disrupting the regularity of basic services provided to citizens.
Conserving electricity
The governors were also directed to follow up daily on the issue of rationalizing electricity consumption, including reviewing the conditions of streetlights in public squares and adjusting their operating times, monitoring the lighting of billboards and commercial signs, rearranging public spending priorities, postponing non-urgent expenditures, reducing travel, conferences, events and advertising expenses, in addition to setting controls for investment spending and focusing on completing projects that are nearing completion, in order to maximize the efficiency of using public resources under the current economic conditions.
The government has begun implementing the directive of President Abdel Fattah al-Sisi to study the possibility of referring those manipulating prices to military courts, in order to prevent the exploitation of the current exceptional circumstances to raise or manipulate prices.
cash support
The government also decided to extend the implementation of the decision to increase cash support provided to beneficiaries of the Takaful and Karama programs and families most in need who hold ration cards, which was previously announced as part of the social protection package, for an additional period of two additional months, in addition to the intention to announce early a package of improvements in wages and incomes for state employees starting from the fiscal year 2026/2027, which includes raising the minimum wage.
Securing energy needs
The Egyptian government's measures also included securing the country's energy needs by monitoring supply schedules and existing contracts for petroleum products on a daily basis, and leveraging previously established contractual arrangements and price hedges that cover a significant portion of imports, thus mitigating the impact of global price increases. Coordination is also underway with international partners in the energy sector to ensure a steady supply and boost domestic production rates during the current period.
Coordination is also underway between the government and the Central Bank to enhance foreign currency resources, through communication with international financial institutions to expedite some of the scheduled financing tranches, in addition to moving in international markets and expanding the government offerings program during the coming months, and attracting foreign direct investments, which supports the ability of the Egyptian economy to deal with current global changes, while supporting exports of goods and services, and ensuring the competitiveness of industry and exports.
The measures are "temporary"
The government stressed that these “temporary” measures come within the framework of a temporary phased approach to dealing with the exceptional circumstances that global energy markets are going through, and that it will continue to monitor developments in the international situation on a daily basis, while being prepared to take the necessary measures to reconsider, in the event that the conditions of energy markets and prices globally change for the better, in order to maintain the stability of local markets and alleviate the burdens as much as possible on citizens and productive sectors.
The Egyptian government announced today (Tuesday) a package of social, economic, and precautionary measures aimed at maintaining market stability and ensuring the continuity of energy supplies, in addition to protecting the most affected groups from global fluctuations, amid rapid military developments in the region and the accompanying severe disruptions in global energy markets and noticeable increases in oil and petroleum product prices. The Egyptian government has intensified its efforts to monitor the repercussions of these changes on the local economy.
Fuel Price Adjustments in Egypt
The announcement of Egypt's measures came just hours after the Egyptian government announced an increase in the prices of several petroleum products and automotive gas, effective today (Tuesday). According to the decision, the price of 95 octane gasoline rose to 24 EGP per liter from 21 EGP, while 92 octane gasoline increased to 22.25 EGP from 19.25 EGP. Meanwhile, 80 octane gasoline rose to 20.75 EGP per liter compared to 17.75 EGP previously. The increase also affected diesel, which rose to 20.5 EGP per liter from 17.5 EGP.
Increase in Gas Cylinder Prices
The increases also extended to domestic gas cylinders, with the price of the 12.5-kilogram cylinder rising from 225 EGP to 275 EGP, while the price of the 25-kilogram cylinder increased from 450 EGP to 550 EGP.
Government Spending Rationalization
The Egyptian government's measures included rationalizing spending within government entities and their affiliated agencies, focusing on reducing consumption in some energy-intensive activities, which contributes to lowering fuel and electricity consumption in the coming period. This includes reviewing operational patterns in several projects and services that rely heavily on diesel, mazout, and gasoline, and adjusting their work rhythm to achieve a noticeable reduction in consumption without compromising the regularity of essential services provided to citizens.
Electricity Consumption Rationalization
The governors were also directed to monitor electricity consumption rationalization daily, which includes reviewing the status of street lighting poles in public squares and adjusting their operating times, monitoring the lighting of advertising boards and commercial signs, rearranging public spending priorities, postponing non-urgent expenditures, and limiting travel, conferences, events, and advertising expenses. Additionally, controls for investment spending were established, focusing on completing projects that are nearing completion, which contributes to maximizing the efficiency of public resource use under the current economic conditions.
The government has begun implementing the directive of President Abdel Fattah El-Sisi to study the possibility of referring price manipulators to military courts to prevent exploiting the current exceptional circumstances to raise or manipulate prices.
Cash Support
The government also decided to extend the implementation of the decision to increase cash
