Egypt orders early shop closures, weighs partial remote work to curb energy use
Egypt will impose earlier closing hours for shops, malls and restaurants for a month and is considering partial remote work for government employees, Prime Minister Mostafa Madbouly said on Wednesday.
The measures aim to reduce energy consumption, Madbouly said, amid the ongoing military escalation in the region.
The US-Israeli war in Iran and the retaliatory Iranian strikes across the region since February 28 have disrupted energy flows, driven up oil and gas prices, and heightened instability in the Middle East.
“We are facing a truly exceptional global crisis, and its repercussions will be severe for the entire world,” Madbouly said in a press conference after the weekly Cabinet meeting on Wednesday.
He said Egypt’s natural gas import bill more than doubled from $560 million per month before the war to $1.65 billion currently.
Rationalization Plan
Madbouly announced that all shops, malls and restaurants will close at 9 pm, except on Thursdays and Fridays when closing time will be extended to 10 pm.
The measures will take effect on March 28 and remain in place for one month before being re-evaluated.
He also ordered the suspension of lighting for roadside advertisements to conserve electricity and said government district offices in the New Administrative Capital will close by 6 pm.
The prime minister said the government is studying the possibility of implementing remote work one or two days a week for public sector employees, excluding sectors like factories, healthcare facilities and production-related sectors.
“All of these [measures] have one goal: to reduce the consumption bill, because the alternative would be to resort again to further price increases.”
He warned that price increases would have “very harmful” repercussions to the economy, triggering a wave of inflation.
Reducing Government Spending
In the wake of the war, the Cabinet has adopted a set of measures aimed at reducing government spending and energy consumption, including cutting government activities, reducing fuel use, limiting lighting, and promoting public transport and natural gas vehicles.
The government also raised gasoline prices by up to 30 percent amidst the economic impact of the regional escalation, but said the hikes will be reviewed once conditions stabilize.