Egypt to Cut Government Electricity Use by 20% & Fuel by 30%

Egypt's Council of Ministers has introduced a three-month government spending reduction plan, requiring public entities to cut electricity consumption by 20% and fuel use in government vehicles by at least 30%, as part of efforts to manage public expenditure amid regional economic uncertainty.

The measures, which took effect on November 10th, 2026, apply to government ministries, local administrative units and public service and economic authorities. Electricity and fuel reductions will be measured against consumption during the corresponding period of the previous year.

Cabinet spokesperson Mohamed Adel said the measures aim to redirect government spending and create financial flexibility to respond to potential regional developments. He stressed that the reductions would not involve electricity load shedding for citizens or affect essential public services.

The plan also includes postponing or slowing national projects that consume significant amounts of fuel for three months. Government entities must identify affected projects and report their expected savings to the Ministry of Finance and the Cabinet.

Additionally, the government will not begin new projects during the current financial year, prioritising the completion of existing developments. Purchases of new passenger vehicles for government entities will also be suspended until the end of fiscal year 2026/2027.

Exemptions include healthcare, education, drinking water and sanitation, as well as projects related to food, water, national and energy security. All phases of the presidential Hayah Karima initiative will also continue, alongside financial allocations for subsidised food, petroleum products, pensions and the Takaful and Karama social protection programme.