Egypt hikes fuel prices up to 30% as Iran war sends global oil soaring

Egypt has raised domestic fuel prices with some categories increasing by as much as 30 per cent as soaring global oil prices linked to the ongoing Iran war put pressure on the country’s energy costs and public finances.

The new prices took effect on Tuesday, the petroleum ministry said, marking the first fuel hike of 2026.

Petrol and diesel prices rise

Petrol and diesel prices were raised by between 14 per cent and 17 per cent across different grades.

Diesel, one of the most widely used fuels in the country, rose to 20.50 Egyptian pounds per litre from about 17 pounds previously.

Petrol prices also climbed sharply, with 80-octane fuel rising to 20.75 pounds per litre, 92-octane to 22.25 pounds and 95-octane to 24 pounds.

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Compressed natural gas (CNG) used by vehicles saw the steepest increase, jumping 30 per cent to 13 pounds.

Meanwhile, the price of domestic gas cylinders rose by about 22 per cent, adding further pressure on household budgets.

Government cites global energy turmoil

In a statement, the petroleum ministry said the increase reflects an “exceptional situation” in global energy markets triggered by geopolitical tensions, supply disruptions and sharply higher shipping and insurance costs.

Global oil prices have surged to multi-year highs as the conflict involving Iran disrupts energy flows and threatens key shipping routes in the Gulf region, pushing crude prices above $115 per barrel earlier this week.

The move highlights the growing economic strain on Egypt, which remains a major importer of energy.

Electricity-saving measures announced

The price hike came a day after the government unveiled new electricity-saving measures aimed at reducing fuel consumption and strengthening energy security.

Under the plan, authorities will cut lighting in public areas while maintaining stable electricity supply to homes and industries.

Prime Minister Mostafa Madbouly has also directed regional governors to intensify action against electricity theft and warned that traders attempting to exploit the crisis by inflating prices could face trial in military courts.

Tuesday’s increase is the first since October last year, when Egypt raised fuel prices under its economic reform programme backed by the International Monetary Fund.

Phasing out energy subsidies remains a central pillar of Egypt’s agreement with the lender, with the government gradually moving domestic fuel prices closer to market levels.

Officials had earlier indicated that fuel prices would remain unchanged for at least a year after the October hike. However, the sharp spike in global crude prices forced the government to reconsider.

Egypt has relied on successive financial support programmes from the International Monetary Fund since securing a $12 billion loan in 2016 to stabilise its economy after the unrest triggered by the Arab Spring.

The country later agreed to an expanded $8 billion programme with the IMF in 2024, which includes commitments to cut fuel, electricity and food subsidies while strengthening social safety nets.

President Abdel Fattah El Sisi said on Monday that the country’s economy remains in the “safe zone” despite regional instability, even as the Egyptian pound weakened about six per cent this week to its lowest official level on record.