Egypt: Fuel Prices Rise

Geopolitical tensions in the world, hampering international trade, and a severe shortage of hard currency have all forced the Egyptian government to revise fuel prices upward. The government commission that sets so-called “base prices” for energy (FAPC) announced an average 15% increase in the prices for a wide range of fuel products, including gasoline, diesel, and kerosene, while keeping fuel oil prices unchanged for the electric industry.

Egypt is suffering from a shortage of fuel oil used for power plants, forcing the government to cut off supplies for several hours a day. During a recent press conference, Egyptian Prime Minister Mustafa Madbouly stated that “Egypt has an average daily consumption of 38.5 gigawatts, which could lead to blackouts in some areas.”

To address the electricity shortage, Egypt’s Ministry of Electricity and Renewable Energy announced an investment of $700 million to add approximately 750 megawatts of electricity generated by two solar and wind farms between 2025 and 2026.

The first project, a wind farm with 250 megawatts of electricity, will open in August. The plant will be built in the Suez Canal Special Economic Zone by an international consortium comprising Orascom Construction, Toyota, and ENGIE (formerly GDF Suez, a French multinational company operating in the natural gas production and distribution, renewable energy and services sectors).