Egypt orders its ministries to use 20 per cent less electricity and 30 per cent less fuel

Egypt, Africa's largest gas user, has told its government offices to cut back sharply on electricity and fuel.

What the decree says

The cabinet, chaired by Prime Minister Mostafa Madbouly, approved a draft decree on rationalising public spending on Thursday 5 November, Al Jazeera, Egypt Oil & Gas and Cairo 24 reported. Its main points:

• Government bodies must cut electricity and lighting use by 20 per cent, compared with average use in the same period last financial year.
• Fuel for government vehicles must fall by at least 30 per cent.
• National projects that use a lot of diesel, mazut or petrol will be postponed or slowed for at least three months, with regular reviews.
• At least 20 per cent of the remaining budget for goods and services is frozen.
• No new passenger cars may be bought, and no new investment projects contracted, until 30 June 2027. Projects already under contract are not affected.
• Spending on adverts, receptions and ceremonies is banned, and foreign travel is limited to cases of extreme need.

The energy cuts last three months from when the decree takes effect and can be extended.

Health, national security, debt payments, pensions and cash transfers, food ration subsidies, education, and drinking water and sanitation are exempt. The cabinet said the cuts must not affect the delivery of services to the public.

Why now

The government tied the measures to current events in the Middle East and the need to reorder spending. Egypt produces less gas than it uses and has had to import LNG to keep its power stations running. When fighting in the region pushes up energy prices, that bill grows.

What it means for you

There is no direct effect on Nigerian homes. But Egypt shows how a war far away can reach a country's light bills and budget through the price of imported gas. Nigeria has the opposite position: it exports LNG and has large gas reserves. Yet this week Nigeria's own power plants were short of gas too. Read more. Having gas in the ground is not the same as getting it to power stations.