Egypt raises electricity prices for higher-use households, businesses amid energy crisis

Egypt has raised electricity prices for higher-use residential consumers and commercial users starting in April, the electricity ​ministry said on Saturday, citing a severe global energy ‌crisis linked to the war in the Gulf region.

The move is the latest in a series of steps by the government to curb energy use ​and contain mounting fiscal pressure as higher import costs strain ​the finances of the Arab world’s most populous country.

In ⁠a statement, the ministry said lower-consumption households would be shielded ​from the increases, which would be limited to higher-use segments and commercial ​users in an effort to maintain electricity supplies across the residential, commercial and industrial sectors.

It said electricity prices for residential consumption bands of up to ​2,000 kilowatt-hours per month would remain unchanged, while tariffs for higher ​residential brackets would rise by an average of 16%.

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Commercial electricity prices across all ‌brackets ⁠would increase by an average of about 20%, it added.

Prime Minister Mostafa Madbouly said in March that Egypt’s energy import bill had more than doubled since the war involving the United States, Israel and ​Iran began, forcing ​the government to ⁠raise fuel prices, increase public transport fares and slow some state projects to ease pressure on public ​finances.

Egypt began implementing measures in March to ​rationalise energy ⁠consumption, including earlier closing hours for commercial venues, as global oil prices rose amid the conflict.

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The country was already grappling with heavy debt ⁠burdens, ​with interest payments consuming about half of ​government spending this fiscal year, while inflation has remained in double digits after peaking ​at 38% in September 2023.