Egypt’s Cabinet has approved a draft decision requiring government entities to reduce electricity consumption by 20% and fuel use by at least 30% for three months, as the government seeks to rationalise public spending amid ongoing regional developments, according to a statement on November 5.
Under the new rules, government entities must cut electricity and lighting consumption by 20% compared with their average actual consumption during the corresponding period of FY 2025/2026. They must also reduce fuel consumption by government vehicles by at least 30%.
The measures also call for the exceptional postponement or slowdown of implementation of national projects with high consumption of diesel, fuel oil and gasoline for at least three months.
The government said it will review the situation periodically and may extend the suspension if the crisis persists.
Relevant entities must also prepare implementation plans to reduce electricity consumption at national projects by 20% and fuel consumption by 30%.
The plans require approval from the competent authority and must be submitted to the ministries of finance; planning and economic development; electricity and renewable energy; and petroleum and mineral resources, as well as the cabinet.
The cabinet said the measures were intended to reprioritise public expenditure and mitigate the adverse effects of ongoing developments in the Middle East.
It added that spending cuts must not affect the delivery of services or the performance of the responsibilities assigned to the entities covered by the decision.