Egypt introduces energy-saving measures amid rising regional tensions

The Egyptian government has begun implementing a series of strict measures aimed at reducing fuel consumption, PM Mostafa Madbouly said during a weekly cabinet meeting, citing mounting pressure from rising global energy prices linked to ongoing regional tensions.

Among the key decisions is a temporary slowdown of major infrastructure projects that consume large amounts of diesel and gasoline, to be implemented for at least two months. Ministries have been tasked with identifying such projects. In addition, fuel allocations for all government vehicles will be reduced by 30%, and agencies will be required to adjust their operations accordingly, according to Al Ahram and local sources.

The government will also introduce remote work every Sunday across public and private sectors, starting in April for an initial period of one month. However, essential sectors, including factories, utilities, and hospitals, will be exempt. Schools and universities will continue in-person attendance due to the short remaining academic term.

Madbouly noted that the measures aim to curb energy use without disrupting productivity. He added that Egypt’s monthly energy bill has surged significantly, driven by global oil price increases, with diesel costs alone adding millions of dollars daily.

The Prime Minister warned that prolonged regional instability could force more stringent actions. Nevertheless, he explained that the government remains committed to balancing economic stability, maintaining production levels, and minimising the burden on citizens while ensuring the availability of essential goods.

Days after the US-Israeli strikes against Iran on February 28, the Egyptian government raised fuel and public transport prices by up to 30% to offset a doubled monthly energy bill, while expanding social protection packages for low-income groups to absorb the resulting inflation.

Egyptian Ministry of Petroleum and Mineral Resources said earlier it was targeting savings of around EGP 38bn ($731mn) from the recent increase in fuel prices during the remaining four months of FY 2025/26,