Energy crunch spreads while Egypt boasts of “best-performing” response

The United States-Israel war involving Iran has triggered a global fuel crisis, leaving thousands of tankers carrying vital oil and liquefied natural gas (LNG) stranded on either side of the Strait of Hormuz.

Amid the disruption, Egypt’s government has highlighted its response, saying its measures have enabled it to manage the crisis effectively. A government spokesperson said on April 10 that Egypt was among the “best-performing” countries in addressing the situation, pointing to policies aimed at reducing fuel consumption—an approach examined in detail by Al Jazeera.

Egypt’s Petroleum Ministry has announced fuel price increases ranging from 14 percent to 30 percent.

On March 28, Prime Minister Mostafa Madbouly said during a press conference that Egypt’s energy import bill had surged from $1.2bn in January to $2.5bn in March.

Egypt is both one of the region’s largest energy importers and among its most heavily indebted economies. Although domestic oil and gas supply most of its energy needs, the country still depends on imports—particularly refined oil products and some natural gas—from Israel and Gulf states.

At the same time, Madbouly outlined measures designed to ease pressure on energy resources:

-Since March 28, shops, malls, and restaurants have been required to close at 9pm daily for one month, except on Thursdays and Fridays, when they may remain open until 10pm.

-Fuel allocations for government vehicles have been reduced by 30 percent.

–Street lighting and advertising illumination have been cut by 50 percent.

-From April 1, eligible employees have been working remotely on Sundays—the first day of the working week—except for essential services such as pharmacies, grocery stores, and tourist facilities.

Beyond Egypt, several other countries have also introduced measures to conserve energy, particularly in Southeast Asia, where economies are heavily reliant on Gulf energy supplies.

Last week, Malaysia instructed civil servants to work from home to reduce energy use in government offices.

In mid-March, it was reported that government offices in the Philippines had shifted to a four-day work week. Officials in Thailand and Vietnam were encouraged to work remotely and limit travel, while Myanmar introduced alternating driving days.

Meanwhile, Pakistan—which imports about 80 percent of its energy from the Gulf—announced nationwide early closures for markets and shopping malls at 8pm, except in Sindh province. Food outlets must shut by 10pm, which is also the deadline for wedding events at private venues and homes.

Although Tehran and Washington have agreed to a temporary ceasefire and are set to begin face-to-face negotiations in Islamabad on April 11—with mediation from Pakistan—uncertainty continues to weigh on Asian energy markets. Experts warn that oil and gas prices may take time to stabilise following recent volatility.

By Nazrin Sadigova