Energy crisis linked to Iran war forces early closures across Cairo

Businesses across Cairo have been required to close earlier than usual as authorities attempt to manage rising energy costs linked to the US-Israeli war on Iran, according to a report published by Al-Monitor via AFP on April 5th.

The new restrictions have significantly changed daily life in the Egyptian capital, a city long known for its active nightlife.

The government imposed energy-saving measures on March 28th as part of what officials described as an effort to control soaring fuel costs.

Under the new rules, shops must close at 9:00 pm on weekdays and 10:00 pm on weekends, with a temporary extension to 11:00 pm expected during the upcoming Coptic Easter celebrations.

Authorities have also deployed police patrols to ensure that businesses comply with the regulations.

The changes have had an immediate impact on residents and workers who rely on evening activity. Shop employees and business owners reported sharp declines in customer traffic, particularly during hours previously considered peak.

Some small businesses have already experienced major losses, with one clothing shop worker estimating that revenue had dropped by more than half within just a few days of the new rules taking effect.

Government officials stated that the decision was necessary because of the country’s dependence on imported fuel.

According to Prime Minister Mostafa Madbouly, Egypt’s monthly energy import bill increased dramatically from January to March, reaching approximately $2.5 billion.

Around 60% of the nation’s annual oil budget is used to supply electricity to the national grid, making the country particularly vulnerable to global energy price increases.

In response to the financial pressure, authorities have introduced a series of additional measures. These include raising fuel prices, slowing certain government projects, encouraging remote work on Sundays and reducing street lighting in some areas.

Officials described these policies as exceptional steps designed to stabilise the energy system and manage public spending during a period of economic strain.

Economists and business owners have warned that the restrictions may disproportionately affect the informal sector, which accounts for a large share of employment in Egypt.

Many small enterprises depend heavily on evening customers, and reduced operating hours can significantly limit income. The economic pressure has been compounded by currency depreciation and rising inflation since the conflict began earlier in the year.

Tourism and entertainment industries have also reported losses. Cinema operators noted declining ticket sales due to the cancellation of late-night screenings, while shopkeepers in historic areas said earlier closing times make it difficult to serve visitors who typically explore the city after sunset.

As a result, many residents and business owners are adjusting to what they describe as a quieter and less active version of the capital.

Al-Monitor via AFP, Maghrebi.org