The Ministry of Petroleum and Mineral Resources has earmarked $2 billion for oil and natural gas imports this month to meet surging domestic demand, a source familiar with the ministry’s fuel imports file told Al Manassa. The allocation marks a 43% increase over the same month last year, when the import bill totaled $1.4 billion.
The ramp-up comes as the government struggles to cover a growing deficit in petroleum products and natural gas, now at 30%, according to the source, who requested anonymity. The shortfall has deepened as summer temperatures drive up consumption.
The spike in import costs follows the outbreak of the US-Israeli war on Iran. The conflict has driven up global energy prices and increased financial risks in emerging markets, triggering an outflow of “hot money” from Egypt and a corresponding rise in the dollar exchange rate.
Egypt’s trade deficit has worsened significantly due to petroleum imports, which jumped to $19.4 billion during the 2024-2025 fiscal year, compared to $13.4 billion the previous fiscal year. This surge fueled by a $3.9 billion increase in natural gas imports, alongside a $1.7 billion rise in petroleum products and $495.3 million in crude oil.
To manage the incoming supply, the Egyptian General Petroleum Corporation (EGPC) is directing crude shipments to local refineries, the source told Al Manassa. Meanwhile, the Egyptian Natural Gas Holding Company (EGAS) is pumping gas into the national grid for distribution to industrial and consumer sectors.
The source noted that EGPC has already received four shipments of crude and petroleum products, with three more expected before the end of May. Additionally, five liquefied natural gas (LNG) shipments arrived in Egyptian territorial waters during the first 10 days of the month; total LNG arrivals for May are projected to reach between eight and 10 shipments.
Roughly 70% of these contracts are sourced from Arab markets, primarily neighboring countries, to minimize transportation and shipping costs, the source added.
Egypt’s domestic crude oil production currently ranges between 500,000 and 525,000 barrels per day (bpd). This falls short of local demand, forcing the state to import an additional 200,000 to 250,000 bpd from abroad.
Amid the supply crunch, the government is also moving to curb demand through pricing. On May 3, the Official Gazette published Prime Ministerial Decree No. 1306 of 2026, which hiked natural gas prices for several industrial activities effective immediately.
