Arab Finance: Prime Minister Mostafa Madbouly rolled out plans to cut fuel allocations for government vehicles by 30% and pause major ongoing projects that consume high levels of fuel and diesel for at least two months.
The decisive measures aim to mitigate the economic impact of the US-Iran conflict, which results in increased energy costs.
Madbouly noted that the energy bill stood at $1.2 billion in January before the beginning of the war, then rose to $1.5 billion in February and $2.5 billion this March.
He warned that the continued upward trend in prices will further increase the burden of this monthly bill.
The prime minister also addressed the developments in diesel prices, highlighting that the price per ton before the war reached $665, while it has since risen to around $1,665 per ton.
Egypt consumes around 24,000 tons of diesel on a daily basis, which equals $24 million daily and $750 million per month.
As part of a broader effort to reduce energy consumption, the government decided to introduce a remote work system for one day a week for employees across both the public and private sectors.
During the cabinet's meeting on March 10th, Madbouly defended the announced hikes in fuel prices and described the step as a proactive measure to ensure the continuous operations of the Egyptian economy and production.
