Egypt raises fuel import budget to meet demand

Egypt has increased its fuel import budget by almost 40 percent for the 2026-2027 fiscal year, amid higher global prices driven by the Iran war.

The government has allocated $5.5 billion to secure supplies of gasoline, diesel and LPG, Asharq Business reported, quoting an unidentified government official.

The Egyptian fiscal year begins on July 1.

Cairo plans to import 2.22 million tonnes of diesel for $2 billion and 1.65 million tonnes of LPG for $1.05 billion. The government intends to spend $1.6 billion to import 1.83 million tonnes of 95-octane gasoline to meet growing local demand.

Annual petroleum product consumption in the North African nation is estimated at 55 million tonnes and the shortfall is met through imports.

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In March prime minister Mostafa Madbouly said the country’s gas import bill had increased by $1.1 billion a month since the outbreak of the war. In the same month the government raised fuel prices following a spike in the cost of oil and gas.

Last week Egypt confirmed a new natural gas discovery in the Nile Delta. Officials expect the find to increase local production and cut the energy import bill.

Cairo reduced $1.3 billion in arrears owed to international oil and gas companies to $714 million by the end of April, petroleum minister Karim Badawi said earlier this month.