Written by: Fatma Younes
Prime Minister Dr. Mostafa Madbouly confirmed that the rise in the price per barrel of oil places the state before three main options to deal with the financial burdens resulting from this increase, in light of the current geopolitical circumstances that have led to prices rising to record levels compared to the estimates previously set in the general budget.
Difficult options to face the energy crisis
The Prime Minister explained, during his participation in the Egyptian Energy Path session within the activities of the Egypt 2026 Forum, that the first option is to pass the price differences resulting from the global increase to the citizen, while the second option entails the state bearing the full cost, which imposes additional financial pressures and increases the need for borrowing and increasing debt. He pointed out that the third option is based on reducing the quantities of imported fuel, a path that may affect the availability of fuel at stations or lead to the necessity of reducing electrical loads.
Periodic meetings to provide appropriations
Madbouly pointed out that the economic group holds periodic and continuous meetings to manage the financial appropriations and needs necessary to release shipments and fuel in both local and foreign currencies, confirming that the state will continue to bear the largest part of the burdens of providing the needs of citizens and industry to ensure the continued availability of goods, services, and energy despite global economic challenges.
Accelerating the transition to renewable energy
In a related context, the Prime Minister revealed the state's plans to accelerate the expansion of new and renewable energy projects to reduce reliance on traditional fuel and face its price fluctuations, aiming to reach high contributions of renewable energy to the energy mix over the coming years, which requires huge investments to develop electricity grids and raise their efficiency to accommodate new energies.
