Written by: Islam El-Sakka
Prime Minister Dr. Mostafa Madbouly confirmed that the significant increases in global energy prices are exerting extreme pressure on the state, noting that the continuation of this crisis and the lack of necessary financial resources to secure fuel needs could lead to resorting to electricity load shedding for periods ranging between six and eight hours daily.
This came during the Prime Minister's speech at the session titled "The Egyptian Energy March: National Achievements and Future Horizons" as part of the Egypt 2026 Forum activities, in the presence of President Abdel Fattah El-Sisi. He explained that the state's general budget had set estimates for the price of a barrel of oil at seventy-five dollars, while the current price has exceeded the one hundred and ten-dollar mark, which doubles the cost of providing the necessary fuel for various sectors.
Difficult choices for dealing with rising costs
The Prime Minister reviewed the three options available to the state in light of these increases: shifting the entire increase to the citizen, the state bearing the full cost through its resources or borrowing, or adhering to budget allocations and providing only a portion of the needs. He explained that the latter option could lead to a shortage of fuel supplies at filling stations and the possibility of increased power outage hours, stressing that the government is currently bearing the largest share of the cost to achieve balance and economic stability.
Expansion in renewable energy
Madbouly pointed to the government's plans to accelerate the pace of expansion in new and renewable energy projects to reach forty-five percent of the energy mix by 2028, and fifty percent by 2030. He added that the cost of upgrading the electricity grids necessary to achieve the 2028 targets is estimated at about two hundred billion Egyptian pounds, stressing the state's commitment to providing the financial resources to implement these vital projects and ensure the continuity of energy supplies to citizens.
