
Egypt will impose emergency energy-saving measures this weekend as the closure of the Strait of Hormuz drives up fuel costs and raises fears of an energy crisis.
From 28 March, Prime Minister Mostafa Madbouly said the measures will run for one month to reduce consumption and ease pressure on supplies.
Restaurants, cafés, shopping malls and the Khan El Khalili bazaar in central Cairo will close at 9pm. Tourist attractions, including the Light and Sound show at the pyramids, will also shut early.
Government offices will close at 6pm, with remote work allowed. Street lighting will be reduced and roadside advertising screens switched off.
A manager at a major plastics factory on the outskirts of Cairo told RFI that businesses remain exempt from the restrictions for now.
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Fuel pressure builds
The measures come as the war in the Middle East war enters its fourth week. Tehran closed the Strait of Hormuz at the start of the conflict on 28 February, disrupting a route that carries about 20 percent of global oil and liquefied natural gas.
Fuel prices have risen sharply since the closure.
Egypt’s monthly natural gas import bill jumped from $560 million before the war to $1.65 billion at the start of the conflict.
Economist Hany Genena, head of research at Al Ahly Pharos investment bank, said fuel prices were raised by 5.5 US cents per litre on 10 March despite a government pledge not to increase them before October 2026.
He added that another increase could follow within two months if the strait remains closed.
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Tourism concerns
Tourism had rebounded strongly, with a 20 percent rise in international arrivals in 2025. The sector accounts for about 8.5 percent of the economy.
However, visitors may now be discouraged by the nearby conflict and official warnings urging caution over possible spillover.
The new energy measures could also affect the visitor experience.
Hotels in Cairo, including the Mariott and The Cosmopolitan, told RFI they have generators to handle power cuts and will keep restaurants open for guests regardless of closing times elsewhere.
Genena said targeting shops and restaurants makes sense as they use about 5-6 percent of electricity each year, while power generation consumes around 60 percent of Egypt’s natural gas supply.
He said the measures could save around "$50 million if applied for a month".
He added there are "talks on exempting touristic sites and restaurants, so tourism is unlikely to be impacted by the decision".
Government response
Genena said the government acted more quickly than during the Russia-Ukraine war in 2022, when a slower response led to foreign currency shortages and a currency crash.
"A materially slower reaction post the Russia/Ukraine war ended in FX shortages and a currency crash," he said. "In short, [it] has become adept at crisis management."