Egypt ordered shops, restaurants, and cafes across the country to close by 9:00 pm starting Saturday as the government moved to slash electricity consumption amid a spiraling energy crisis triggered by the war in Iran. The measure came into effect on March 28, 2026, and will last for one month with provisions for extension if the regional conflict continues.
Prime Minister Mostafa Madbouly announced the decision during a press conference in Cairo. He stated that the government had no alternative but to implement the restrictions as energy costs skyrocketed. “The government has no choice but to implement this decision,” Madbouly said. As reported by ALO360, the measures represent the most significant energy rationing policy Egypt has enacted in recent years.
Fuel Costs Double Amid Regional Conflict
The war in Iran, which began at the end of February 2026, has sent Egypt’s energy expenses soaring. Madbouly revealed that the country’s monthly fuel bill jumped from 1.2 billion in January to 2.5 billion in March. The conflict intensified when the United States and Israel launched attacks on Iran, prompting Tehran to respond with strikes across several regional countries and effectively close the Strait of Hormuz.
The strait handles approximately one-fifth of global oil supplies. Global crude prices reached 112 per barrel at Friday’s close, exceeding the 105 per barrel baseline used for Egyptian government calculations. Madbouly noted that Egypt’s daily diesel consumption of 24,000 tonnes now costs an additional 24 million per day, or roughly 750 million per month.
Additional Conservation Measures Take Effect
Beyond the early closure mandate, the Egyptian government introduced several complementary policies to reduce energy use. Street lighting and illuminated advertising billboards will operate at reduced levels. Government agencies and institutions must cut their petroleum product consumption by 30 percent. Major state projects will slow down for two months to conserve diesel and petrol.
Furthermore, a partial remote work system will begin on April 5. All public and private sector employees will work from home every Sunday for one month, excluding workers in production, service, and hospital sectors. Madbouly indicated that a second weekly remote work day could be added if the war persists.
Economic Pressures Mount
Egypt faces accelerating inflation due to rising energy and shipping costs. Inflation reached an annual rate of 13.4 percent in urban areas in February, up from 11.9 percent in January, according to data from the Central Agency for Public Mobilisation and Statistics. On March 10, the Ministry of Petroleum and Mineral Resources raised fuel and gas prices by between 14 percent and 30 percent, marking the third such increase in 12 months. Railway and some metro line fares increased by up to 25 percent on Friday.
Madbouly emphasized that the state continues to bear the majority of these costs. He stated that recent price increases cover less than one-third of the rise in global costs. He also reported that banks face no crisis in providing dollars to meet all needs, despite declining state revenues and the rising import bill.
Exceptions and Exemptions
Hotels and tourist attractions will remain exempt from the early closure requirements. Tourism contributes approximately 10 percent of Egypt’s economy. Several hotels in Cairo, including the Marriott and Cosmopolitan, told broadcaster RFI that they had acquired generators in case of power cuts and would keep their restaurants open for guests regardless of closing times elsewhere.
Essential services such as pharmacies and grocery stores also received exemptions. Thursday and Friday evenings, which constitute the Egyptian weekend, will allow extensions until 10:00 pm.
