Egypt has increased electricity tariffs for commercial users and high-consumption residential households effective this April, citing a severe global energy crunch linked to ongoing hostilities in the Gulf region.
The Ministry of Electricity and Renewable Energy announced the decision late Saturday, attributing the move to an “unprecedented international crisis” affecting all fuel sources, reports Xinhua.
Under the revised rates, residential customers consuming 2,000 kilowatt-hours or more per month will face an average increase of 16 per cent, while lower usage tiers remain unaffected. Commercial electricity prices are set to rise by approximately 20 percent across all brackets.
The tariff hike is the latest in a series of austerity measures implemented by the government to manage ballooning energy import bills and strained public finances.
Prime Minister Mostafa Madbouly stated in March that import costs have more than doubled since the outbreak of conflict involving the United States, Israel, and Iran.
In response to these financial pressures, authorities have already raised fuel prices, increased public transport fares, and slowed progress on several fuel-intensive state projects.
Earlier austerity measures introduced in late March included the activation of remote work protocols, a 30 per cent reduction in fuel allocations for government vehicles, and shortened operating hours for shops, malls, restaurants, and cafes. Furthermore, illumination for billboards and street lighting has been cut by one-third.
Egypt was facing significant financial stress prior to these latest increases. Interest payments on the nation’s substantial debt are projected to consume nearly half of all government spending this fiscal year. Meanwhile, inflation remains in double digits after reaching a peak of 38 per cent in September 2023.
By exempting lower-volume residential users from the price hikes, officials aim to protect vulnerable households while incentivising commercial operations and heavy consumers to reduce demand. The government maintains that these steps are vital to stabilising the national electricity supply across all sectors without exacerbating social hardships.
