Shops and restaurants in Egypt told to close early as energy crisis deepens

Due to escalating energy costs tied to the Iran conflict, Egypt’s government has mandated that retail and dining establishments shut down by 21:00 local time (19:00 GMT) for the next 30 days, starting Saturday. This measure is part of a broader set of temporary restrictions aimed at curbing rising fuel expenses and managing the country’s energy demands.

The measures also involve reducing street lighting and outdoor advertisements, alongside requiring many workers to telecommute one day per week in April. The crisis stems from Egypt’s vulnerability to supply disruptions, as the Middle East war has impacted the Strait of Hormuz, a critical oil and LNG shipping route. With oil prices surging after the waterway’s supply flow nearly stopped, concerns persist about potential increases in food, medicine, and other essentials.

While most employees will work remotely, essential sectors like healthcare, education, and manufacturing are exempt. Hotels and tourist sites are also excluded from these energy-saving rules. However, some Cairo hotels, including Mariott and Cosmopolitan, reported preparing backup generators to ensure their dining areas stay open for guests.

“Our petrol bill alone has more than doubled since January, reaching $2.5bn (£1.9bn) in March,” said Egypt’s Prime Minister Mostafa Madbouly on Saturday.

As a result of the conflict, Egypt has already increased fuel prices and public transport costs to alleviate strain on national finances. Additionally, large state projects consuming significant energy will be slowed, and government vehicle fuel allowances will drop by nearly a third, according to Reuters.

In parallel, Ethiopia announced that state-run companies and public institutions would place non-essential staff on unpaid leave to cut transportation fuel use. Meanwhile, Thailand secured an agreement with Iran to allow its oil tankers safe passage through the Strait of Hormuz, ensuring continued supply for its markets.