Egypt has set a plan to convert 220,000 cars to run on natural gas over three years, starting with 50,000 in fiscal year  2025/2026,  according to a statement by the cabinet on Monday.

Revealing the plan came during a meeting of Prime Minister Mostafa Madbouly with Minister of Finance Ahmed Kouchouk, Minister of Petroleum and Mineral Resources, Karim Badawi and Central Bank Deputy Governor Essam Omar, to follow up on the government’s efforts to convert cars to run on natural gas.

Madbouly directed officials to encourage more citizens to join the initiative by introducing more incentives, stressing that conversion to natural gas significantly reduces fuel costs. According to the cabinet’s statement, the conversion of a car from Gasoline to natural gas could lead to a minimum monthly savings of around EGP2,270.

The Prime Minister also highlighted the importance of encouraging fueling stations to integrate natural gas fuelling services, thereby expanding access for users and strengthening the necessary infrastructure. Madbouly also suggested easing the procedures of setting fuelling stations to encourage the private sector to take part in the plan.

In 2021, Egypt launched the initiative to convert cars to run on compressed natural gas (CNG), as part of its broader push to reduce emissions and rely on cleaner energy sources.

In the first half of 2024/25, approximately 26,000 cars were converted to CNG, with an additional 64,000 conversions expected by the end of the year. This brings the total to 90,000 vehicles for the year and about 643,000 since the initiative began. For the fiscal year 2025/26, the goal is to convert another 165,000 vehicles.

The initiative is expected to cut carbon dioxide emissions by 1.5 million tons annually, leading to improved air quality. Moreover, it is projected to reduce diesel consumption by 50%, decreasing reliance on subsidized petroleum products.