Egypt is moving to secure its energy supplies by turning to Libya as an alternative source of crude oil, amid rising global energy pressures and disruptions affecting traditional suppliers.
According to initial estimates, Egypt is seeking to import between one and 1.2 million barrels of Libyan crude per month, typically through two shipments, in coordination with the National Oil Corporation.
The move reflects Cairo’s effort to stabilize fuel supplies and reduce the impact of supply shortages.
Egypt’s daily consumption ranges between 600,000 and 700,000 barrels of oil and petroleum products. In recent years, the country has relied partly on imports from Kuwait and Saudi Arabia to support its refining capacity.
However, recent regional developments and supply disruptions have forced Egypt to explore alternative options.
Libyan oil offers a practical solution due to its geographic proximity, which allows for faster delivery times and relatively lower transportation and insurance costs.
Analysts view this shift as a short-term adjustment aimed at ensuring continuity of supply rather than a long-term strategic replacement.
The urgency of Egypt’s move is highlighted by a sharp increase in import costs. Spending on petroleum product imports rose from approximately $1.2 billion in January 2026 to about $2.5 billion by March, more than doubling within a short period.
This surge reflects rising global oil prices as well as higher logistics and insurance expenses.
Egypt is also facing challenges in the natural gas sector, with reduced supply levels adding further pressure on the energy system. This has increased reliance on oil imports to meet domestic demand and maintain energy stability.
Despite the shift toward Libyan crude, experts emphasize that domestic fuel prices are unlikely to decrease. Pricing remains linked to global oil markets, exchange rates, and operational costs, meaning the primary goal is supply security rather than cost reduction.
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