Shops and restaurants in Egypt told to close early as energy crisis deepens

Retail and dining premises will have to shut by 21:00 each night for the next month to conserve power.

BBC News - Middle East
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Shops and restaurants in Egypt told to close early as energy crisis deepens

10 hours ago

Aleks Phillips

Getty Images An Egyptian chef prepares a traditional dish in Arabic known as Koshary at Abou Tarek restaurant downtown Cairo Getty Images

(File photo) Restaurants and cafes have been told to close by 21:00 to conserve energy

Shops, restaurants and cafes in Egypt have been told to close early as part of a raft of temporary measures to combat soaring energy prices caused by the Iran war.

Retail and dining premises will have to close by 21:00 (19:00 GMT) each night for the next month, beginning on Saturday.

The "exceptional measures" introduced by the Egyptian government also include dimming street lights and roadside advertising, as well as a return to home working for one day a week in April for many.

Egypt has been particularly affected by the Middle East conflict and the effective blockade of the Strait of Hormuz, a key shipping route for oil and liquefied natural gas.

Global oil prices have skyrocketed since supply via the waterway came to a near-total halt, with fears there could be a knock-on effect on the price of food, medicine and other goods if left unresolved.

Even though Egypt has no involvement in the war, its reliance on imported fuel has made it vulnerable to supply shocks.

Egypt's Prime Minister Mostafa Madbouly said on Saturday that its petrol bill alone had more than doubled from January to $2.5bn (£1.9bn) in March.

Hotels and tourist attractions will be exempt from the energy-saving measures, the government has said. Tourism is estimated to make up around a 10th of Egypt's economy.

However, several hotels in Cairo, including the Mariott and Cosmopolitan, told broadcaster RFI that they had acquired generators in case of power cuts and would keep their restaurants open for guests irrespective of closing times elsewhere.

While most employees will be told to work from home for one day a week, essential workers - such as those in hospitals, schools and factories - will be excluded.

Since Iran began threatening to strike ships transporting good through the Strait of Hormuz, most international shipping through the narrow chokepoint has ceased. Usually, around 20% of the world's oil and gas supply flows through it.

US President Donald Trump has repeatedly vented his frustration that allied nations were unwilling to help escort ships through the waterway.

Thailand said on Saturday that it had reached an agreement with Iran, giving its oil tankers safe passage.

The Egyptian government has already raised petrol prices and the cost of taking public transport to limit the impact of the conflict on its public finances.

It will also slow down large, energy-intensive state projects and cut government vehicle fuel allowances by nearly a third, news agency Reuters reports.

Meanwhile, the Ethiopian government on Saturday told state-owned companies and public institutions to place non-essential staff on leave to conserve fuel used for transport.

Additional reporting by Alaa Ragaie in Cairo and Richard Kagoe in Nairobi

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BBC News - Middle East

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