Egypt’s Monthly Gas Import Bill Surges to USD 1.65 Billion Amid War-Driven Energy Crisis

Egypt's monthly gas import expenditure has risen from USD 560 million to USD 1.65 billion, marking an increase of approximately USDD 1.1 billion per month, as Egypt grapples with a deepening energy crisis triggered by the ongoing regional conflict.

Prime Minister Mostafa Madbouly said that the country is prepared to manage the surge in energy costs, even as fuel prices escalate sharply. Diesel prices have jumped from USD 665 per tonne to USD 1,604 per tonne, while butane, widely used for cooking, has risen 34 percent to USD 730 per tonne since the outbreak of the war.

Despite the mounting financial strain, Madbouly expressed confidence in the government’s ability to handle the situation, noting that the crisis could persist for several months or extend until the end of the year.

A report by the Institute of International Finance attributed Egypt’s growing reliance on imports to a decline in domestic gas production, driven by maturing fields and limited investment. At the same time, rising domestic demand has transformed the country into a net hydrocarbon importer.

Egypt primarily sources gas from Israel and the United States. However, Israel had suspended gas exports at the onset of the conflict, impacting 7–10 percen of Egypt’s total energy consumption, before partially resuming supplies on March 9. These exports remain limited and subject to Israel meeting its domestic demand first.

The IIF also warned of broader economic stress, highlighting that Egypt is witnessing its largest capital outflows since 2022. In the first two weeks of March alone, the country recorded net outflows of around EGP 210 billion (USD 4 billion), underscoring vulnerability to global market volatility.