Egypt's Prime Minister Clarifies Energy Scenarios Amidst Global Price Volatility

Prime Minister Mostafa Madbouly has addressed circulating reports concerning power cuts, refuting claims that daily load shedding of 6 to 8 hours has been announced. He clarified that his earlier remarks at the Egypt 2026 Forum were intended to review potential scenarios for managing escalating global energy prices, not to announce actual power rationing.

During his intervention on the National Economic Transformation Program at the forum, Madbouly explained that these scenarios were presented to highlight the challenges within the energy sector and the available solutions. He stressed that the government has opted to absorb the financial impact of increased global prices to shield citizens from additional burdens during this phase.

Madbouly emphasized that the forum served as a platform to disseminate accurate information and counter misinformation prevalent on social media, in line with President Abdel Fattah al-Sisi's directive to openly discuss and explain national issues.

He further noted that the global energy sector is grappling with significant challenges stemming from current economic and international developments, affecting both developed and developing nations. The state budget for the current fiscal year was predicated on an oil price of $75 per barrel, but current prices exceeding $110 per barrel are placing considerable strain on the budget and the costs associated with supplying fuel and gas for the energy system.

The Prime Minister outlined three potential strategies discussed for navigating these global energy price hikes:

• Passing Costs to Consumers: Directly increasing prices to align with global market rates, a strategy employed by several countries.
• State Absorption: The government temporarily covering the price difference, despite the potential increase in public debt, until market trends stabilize.
• Curbing Fuel Imports: Adhering strictly to budgeted allocations by reducing petroleum imports by 40–50 percent.