The bill for the cross-border war .. Egypt and Turkey raise electricity prices

Syrian News Report

The economic repercussions of the ongoing war in the Middle East have entered the stage of a direct price shock to the energy sector, as both Egypt and Turkey have announced new increases in electricity and gas prices, and these decisions come as a natural reversal of the turmoil caused by  the closure of the Strait of Hormuz to energy transit traffic due to the US-Israeli war against Iran and the rise in the cost of shipping and production globally, which puts the pockets of citizens and commercial sectors facing a harsh "economic winter".

Turkey: Uniform increase of 25% and lira under pressure

Turkey's Energy Market Regulatory Authority (EMC) announced a 25% increase in electricity and natural gas prices as a uniform increase for domestic consumers, which came into effect yesterday, and attributed this decision to the huge jump in production and distribution costs associated with global oil prices.

Under the new amendment, the bill of the household subscriber (for consumption of 100 kWh) will increase to about 323.8 Turkish liras. The increase was not limited to households, but also affected the industrial and agricultural sectors by rates ranging from 5.8% to 24.8%.

Egypt: Protecting 'low-income' and targeting high consumption

In Cairo, the Ministry of Electricity took a different route to try to absorb public anger, announcing increases starting in April, but stressing that they "absolutely do not touch" households with low consumption (below 2,000 kilowatts per month). The increase was attributed to the upper segments by an average of 16%, while the commercial sector received the largest share with an average increase of 20%. The Egyptian government has justified these "emergency increases" as the only way to ensure service continuity as the cost of energy imports has doubled since the start of the war.

The Strait of Hormuz, the hidden engine of the cost of living

Analysts and officials in both countries link these decisions to the tightening of the noose on navigation in the Strait of Hormuz since February 28, a strategic stalemate that has led to severe shortages of gas and oil supplies, forcing governments reeling under the weight of debt and inflation — such as Egypt, which has drained half of its government spending — to pass on the cost of "energy insurance" to the end consumer.

Warnings of stagflation and shrinking purchasing power

On the trade side, there was deep concern, as Ahmed Zaki, head of the exporters division at the Federation of Chambers of Commerce in Egypt, warned of a broad recession. He explained that the market is already suffering from "slow sales movement", and that raising the cost of operating shops and commercial establishments by up to 91% in some segments will inevitably lead to the consumer being charged a new bill, or the cessation of commercial activities due to their inability to absorb the shock.

Social Consequences: "Electricity" is a Daily Stress Element

In Egypt, the increase in electricity prices has coincided with previous increases in fuel and public transportation tickets, making the minimum wage in a losing race against inflation. In Turkey, citizens see these successive increases as draining their savings, at a time when the political and military prospects in the region remain uncertain, foreshadowing more "painful decisions" if the regional conflict drags on.

These decisions reflect the fact that "energy security" has become too costly for non-productive countries, and that the average citizen has become the weakest party to bear the consequences of major geopolitical conflicts.