Egypt’s Minister of Finance Ahmed Kouchouk announced that the government has set an assumed oil price of $75 per barrel in the draft budget for the 2026/27 fiscal year, alongside allocating approximately EGP 120 billion to energy subsidies.
Speaking at a press conference to unveil key details of the new budget, Kouchouk said the oil price assumption reflects a more cautious outlook compared to previous estimates, citing recent geopolitical developments, particularly the economic repercussions of ongoing tensions in the Middle East.
He explained that the allocation for energy subsidies has been calculated with built-in financial buffers to absorb potential volatility in global energy markets. The government, he added, is also factoring in plans to expand the use of renewable and alternative energy sources as part of a broader strategy to reduce long-term fiscal pressure.
Kouchouk emphasized that global oil prices remain a critical determinant of public expenditure, especially in relation to fuel subsidy costs. “We are adopting prudent assumptions to navigate continued uncertainty in international markets,” he noted.
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