Egypt Orders Early Closures for Shops and Restaurants Amid Energy Crisis

Shops, restaurants, and cafes in Egypt will now close by 21:00 local time each night for the next month as part of a government initiative to conserve energy. This decision comes amid soaring energy prices exacerbated by the ongoing conflict in the Middle East, particularly the war involving Iran, which has disrupted oil supplies. Prime Minister Mostafa Madbouly announced these "exceptional measures," which also include dimming street lights and limiting roadside advertising.

The government's response is a direct result of skyrocketing global oil prices, which have more than doubled Egypt's petrol bill from January to $2.5 billion in March. This financial strain has raised concerns about potential knock-on effects on the prices of essential goods such as food and medicine. Egypt, heavily reliant on imported fuel, is facing increased vulnerability due to the blockade of the Strait of Hormuz, a crucial shipping route for oil and liquefied natural gas.

While most businesses will be affected by the new closing times, hotels and tourist attractions are exempt from the early closure rule. This exemption is significant as tourism constitutes approximately 10% of Egypt's economy. Some hotels in Cairo, including the Marriott and Cosmopolitan, have prepared for possible power cuts by acquiring generators, ensuring that their restaurants remain operational regardless of the government's new restrictions.

In addition to early business closures, the Egyptian government plans to implement a return to remote work for many employees, requiring them to work from home one day a week in April. However, essential workers in hospitals, schools, and factories will not be affected by this policy. Citizens are already feeling the impact of rising transportation costs following recent increases in public transport fares.

As Egypt navigates this energy crisis, the government has also announced plans to slow down large, energy-intensive state projects and reduce fuel allowances for government vehicles by nearly a third. These measures highlight the urgency of addressing the energy crisis and its implications for the economy, daily life, and public services. The situation underscores the interconnectedness of global events and local economies, as Egypt grapples with the repercussions of international conflicts on its own energy security.