Egypt allocated EGP 120 billion ($2.26 billion) for energy subsidies in the upcoming FY2026/2027, down from about EGP 150 billion in the current fiscal year, a roughly 20% cut, Finance Minister Ahmed Kouchouk said in a press conference on 11 April.
The budget was prepared before the escalation of the US‑Israeli war on Iran. It assumes an oil price of $75 per barrel and an exchange rate of EGP47 to the dollar. On the day of the conference, the dollar was trading at around EGP53, and Brent crude oil was hovering around $95 per barrel.
Kouchouk noted that the government remains mindful of various risks that might necessitate a revision of these budgetary figures. He explained that both the volume and share of reserves in the new budget have been expanded to mitigate existing and emerging threats, specifically accounting for unique regional instabilities and the resulting economic hardships.
Energy subsidies are projected to fall to EGP 120 billion ($2.26 billion), down from about EGP 150 billion in the current fiscal year, a roughly 20% cut, he said noting that the budget assumes an average oil price of about $75 per barrel.
