Madbouly Explains State’s Three Options on Price Rise

Prime Minister Mustafa Madbouly emphasized that the rise in global oil prices from $75 to about $110 per barrel presents the country with significant financial challenges. This increase affects the operating costs of power plants that depend on gas and petroleum. He clarified that the government faces three options to address this rise: fully bearing the costs, which is currently unfeasible due to limited resources; passing the full costs onto citizens, which conflicts with the government's social role; or maintaining current subsidy levels and reducing imported quantities, a move that could lead to gasoline shortages and power outages of up to 8 hours daily. Madbouly also confirmed that the government is working to secure the country's fuel and electricity needs through intensive meetings with the Central Bank and various ministries, amid the doubling of shipping costs for oil shipments compared to two years ago. Additionally, he announced Egypt’s goal to increase the share of new and renewable energy sources to 45% by 2028, and to further raise this figure to 50% by 2030, with an investment exceeding 200 billion Egyptian pounds aimed at developing the electrical transmission and distribution network.

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