The Egyptian government is not expected to cut fuel prices, a senior cabinet official told Al Manassa, even though the US war on Iran, which has driven up global oil prices, is nearing its conclusion.
The Ministry of Petroleum had announced in 2025 that fuel prices would remain stable until the end of 2026, but it was forced to raise them on an exceptional basis in March 2026, after the closure of the Strait of Hormuz sent global energy prices surging.
At the time, Prime Minister Mostafa Madbouly said the government might reconsider its decision to raise fuel prices if global oil prices fell and the US–Israeli war on Iran came to a halt, noting that these factors would have a direct impact on pricing policy.
Following an announcement by US President Donald Trump that a deal with Iran was close to being signed to secure energy routes through the Strait of Hormuz, global oil prices fell to their lowest level in three months, roughly where they had stood at the start of the war.
Even so, the source, who requested anonymity, believed it would take several months for global markets to stabilize and for global oil prices to return to pre-war levels, paving the way for revisiting domestic fuel prices.
“The bill for importing petroleum products and crude oil rose to about $3 billion in May 2026, compared with $2.5 billion in March and April, imposing additional financial burdens on the state and reducing its ability to cut the prices of petroleum products,” the source said.
The source added that the government remained committed to its IMF program, which requires gradually indexing petroleum products to reach full cost recovery. Future fuel price adjustments would depend on technical factors, primarily import costs, exchange rates, and global market fluctuations.
Separately, the source noted that the government will maintain its energy-rationing protocols through three primary actions: continuing Sunday remote work for civil servants, dimming public buildings and streetlights, and suspending fuel-heavy projects.
