Cairo, April 08 (QNA) - The war that broke out on Feb. 28 in the region between the United States and Israel on one side and Iran on the other has had serious repercussions on the Egypt's economy, especially with the escalation of blatant Iranian attacks on civilian facilities, civilian objects and oil installations in the Gulf states and the disruption of navigation in the Strait of Hormuz, and the resulting negative impact on oil and gas imports in global markets.

The Egyptian government adopted a series of measures to contain the repercussions of the economic crisis it faced by taking several decisions that constituted a great burden on the country's economy and citizens. These included raising petroleum prices and some electricity rates, in addition to closing shops, restaurants and clubs at nine o'clock in the evening for a month, as well as taking a decision to work remotely on Sundays of each week, as part of efforts to rationalize energy consumption.

In this context, Spokesperson of the Egyptian Ministry of Electricity and Renewable Energy Mansour Abdel Ghany told Qatar News Agency (QNA) that the current crisis necessitated decisions to increase the prices of some commercial and residential electricity consumption brackets starting from this April. He pointed out that this comes within the framework of several exceptional measures to maintain the stability of the current and electricity supply, in addition to adopting a campaign to rationalize electricity consumption and activating a number of initiatives, including an initiative to improve energy efficiency, especially in electricity-intensive sectors.

Abdel Ghany pointed out that the Ministry of Electricity had no other way to address the current global energy crisis, the most dangerous in recent decades, except to decide on necessary increases in its prices, in order to ensure the continued provision of electricity to all citizens to the extent they need, whether in their domestic, commercial or industrial consumption.

He also noted that the government's decision to work remotely on Sundays of each week and to close shops, malls and commercial centers at nine o'clock in the evening led to the rationalization of electricity consumption, which in turn led to stability and regularity in the operation of the electricity network in the country, with the development of a system for monitoring and operating the unified network at the national level, to ensure its stability and achieve the optimal and safe distribution of electrical energy in accordance with the highest international standards and specifications.

Regarding the burden that this increase in electricity prices has placed on citizens, the Spokesperson of the Egyptian Ministry of Electricity and Renewable Energy indicated that the ministry was very careful to ensure that these increases would not affect the lower household consumption brackets, which include the majority of Egyptians and represent 40 percent of the total subscribers in Egypt, as the brackets exempt from the increase represent 86 percent of them. The increase was limited to the higher consumption brackets, which include the most capable categories.

In this regard, he noted the fixed prices for electricity consumption for all segments up to the 2000 kilowatt segment per month. He also stated that, within the framework of applying the principle of community participation and distributing burdens among the various segments of the population, those who are more able and benefit more from electricity bear a greater burden than others, as the ministry decided to increase commercial consumption prices in its various segments, by an average of about 20 percent.

Head for the General Division of the Petroleum Products at the Federation of Egyptian Chambers of Commerce, Hassan Nasr, said that Egypt is experiencing rising energy costs due to international developments, particularly tensions around the Strait of Hormuz, which handles between 20 and 25 percent of the world's daily energy production.

He told QNA that the global energy market volatility has directly affected countries including Egypt. Despite record-high international oil prices, the Egyptian leadership has worked to maintain subsidy levels for petroleum products, mitigating the impact on domestic consumers.

Nasr noted that oil prices have surpassed the peaks seen during the COVID-19 pandemic, while the concurrent rise in the US dollar, triggered by capital outflows, has added further pressure on the Egyptian economy, particularly the energy sector.

He highlighted that the Egyptian government has secured energy needs through diversified supply sources, including an agreement with Libya to import around 1.2 million barrels of crude oil monthly, partially replacing imports from Kuwait and contributing to domestic market stability.

Economist Dr. Medhat Sabry told QNA that the regional conflict has caused significant global economic disruptions, with Egypt among the countries facing increased economic pressures. He pointed out that energy price hikes and the effort to maintain strategic reserves of gas and petroleum have increased import costs by more than 33 percent, placing a heavier burden on the state budget and slowing growth and GDP rates.

The Egyptian government has responded with a multi-pronged crisis management strategy, including raising electricity and fuel prices, while also facing higher food costs due to supply disruptions, particularly in meat products, linked to rising import costs of feed and fertilizers.

Meanwhile, Dr. Gamal El Kalyoubi, Professor of Petroleum and Energy Engineering at the American University in Cairo, stressed the global impact of threats to vessels passing through the Strait of Hormuz. He noted that Egypt, like China, India, and the European Union, has been significantly affected by energy supply shortages, which in turn influence economic stability.

El Kalyoubi added that energy disruptions are affecting multiple sectors in Egypt, a country with one of the highest fuel and natural gas consumption rates in the Middle East. He reported that more than 2,176 ships have been delayed near the Strait of Hormuz.

The ongoing attacks by Iran on Arab countries and critical energy infrastructure, combined with the strategic role of Gulf states in global oil exports—accounting for over 23 percent—have compounded Egypt's energy challenges, highlighting the broader international economic repercussions. (QNA)