North Africa’s Largest Economy Triggers Emergency Measures, Slashes Fuel Use Amid Iran War Fallout

Solomon Ekanem

29 March 2026 03:09 PM

North Africa’s largest economy, Egypt, is rolling out emergency energy-saving measures as the economic shock from the Iran war ripples beyond the Middle East, tightening fuel supplies and putting pressure on public finances.

Egypt is implementing emergency energy-saving measures due to economic shocks from the Iran war affecting fuel supplies.

The government will cut fuel allocations for state vehicles by 30% and slow down large infrastructure projects.

Most public and private sector workers, except essential services and manufacturing, will work remotely every Sunday in April.

Disruptions around the Strait of Hormuz are causing higher fuel prices, increased inflation, and public transport costs in Egypt.

According to Reuters, Prime Minister Mostafa Madbouly announced that the government will cut fuel allocations for all state vehicles by 30% and scale back large infrastructure projects dependent on diesel for at least two months.

In addition, both public and private sector workers excluding essential services and manufacturing, will work remotely every Sunday in April, a move that could be extended if pressures persist.

“Egypt will slow down large state projects that involve high fuel and diesel consumption… while fuel allocations for all government vehicles will be cut by 30%,” Madbouly said, adding that remote work could be prolonged “if the war continues.”

Strait of Hormuz disruption amplifies Africa’s energy strain

The measures reflect Egypt’s exposure to global energy shocks, particularly as tensions around the Strait of Hormuz disrupt oil and gas flows.

As one of the world’s most critical shipping routes, any instability in the corridor has immediate consequences for fuel-importing economies across Africa.

For Egypt, which relies heavily on imported energy, the fallout has been swift. Rising global prices have already forced fuel price increases and higher public transport costs, adding to inflationary pressures and squeezing households.

Across the continent, similar dynamics are unfolding, with governments facing higher import bills, currency strain, and difficult fiscal trade-offs.

Despite the austerity measures, Cairo has sought to reassure citizens that the steps are temporary. The government is weighing an increase in the minimum wage and higher allocations for healthcare and education in the upcoming fiscal year to cushion the impact.

Meanwhile, Finance Minister Ahmed Kouchouk said debt servicing costs - already one of the largest components of government spending, are projected to rise by about 5% in the next fiscal cycle.

As global energy markets remain volatile, Egypt’s response underscores a broader reality: external shocks tied to Middle East supply routes continue to shape economic policy across Africa, exposing the continent’s dependence on imported fuel and fragile trade corridors.