In response to the soaring energy prices exacerbated by the lingering effects of the Iran war, shops, restaurants, and cafes across Egypt will be required to close by 21:00 local time for the next month, beginning Saturday.
The Egyptian government has introduced 'exceptional measures' to mitigate the crisis, which includes dimming street lights, reducing roadside advertising brightness, and encouraging homeworking for one day a week starting in April.
Global oil prices have surged due to supply chain disruptions through the Strait of Hormuz, a critical shipping route for oil and liquefied natural gas. Though Egypt is not involved in the conflict, its heavy reliance on imported fuel makes it susceptible to these rising costs and supply shocks.
Prime Minister Mostafa Madbouly revealed that Egypt's petrol expenditures have more than doubled from January to an alarming $2.5 billion in March. The government has already increased petrol prices and public transport fares to cushion the financial strain from this crisis.
Notably, hotels and tourist sites are exempt from these energy-saving measures, reflecting the tourism sector's pivotal role in Egypt's economy. Some Cairo hotels, including the Mariott and Cosmopolitan, are prepared to keep their restaurants open with backup generators available for power outages.
Overall, the situation underscores Egypt's vulnerability in a volatile energy market, as the blockade on the Strait of Hormuz limits vital fuel imports needed to sustain its economy.
