By Zakaria Soohoyde - Reporter
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MOGADISHU, 28 October 2026 — Somalia's Minister of Energy and Natural Resources, Abdullahi Bidhaan, has attributed a recent increase in electricity prices in Mogadishu to rising fuel costs linked to tensions in the Middle East, saying the government intervened to prevent power companies from doubling their tariffs.
Speaking at an event marking Somalia Fisheries Week, Bidhaan said disruptions affecting fuel supplies through the Strait of Hormuz had increased operating costs for electricity providers, which rely heavily on fuel to generate power.
The minister said electricity companies had initially sought to double their charges, but the Ministry of Energy rejected the proposal. He said the companies subsequently introduced an increase of approximately 10%.
Bidhaan identified higher fuel prices as the principal factor behind the tariff adjustment, arguing that developments in the Middle East had placed additional pressure on Somalia's already expensive electricity sector.
"The reason electricity prices were increased was the developments in the Middle East, the closure of the Strait of Hormuz and the resulting shortage of fuel," Bidhaan said.
The minister also acknowledged the broader challenge of high electricity costs in Somalia, describing the country as one of the most expensive in the world for electricity consumers.
He said the federal government had prioritised investment in the energy sector as part of efforts to expand electricity infrastructure, improve reliability and make power more affordable for households and businesses.
According to Bidhaan, more than $250 million in investment is needed to strengthen Somalia's electricity sector and support the provision of affordable, reliable power.
"Somalia is among the countries with the highest electricity prices in the world. The government has made investment in electricity a priority," he said.
Bidhaan also outlined the government's ambition to reduce electricity prices by 45% in Mogadishu and eight other Somali cities.
His remarks follow an announcement on 25 October by three major electricity providers operating in Mogadishu and parts of the country that they had increased electricity tariffs by $0.05, or five US cents, per kilowatt-hour (kWh).
The companies — BECO, Mogadishu Power and Blue Sky Energy — announced the adjustment following a meeting of their executives to assess the impact of rising fuel costs on electricity generation.
In a joint statement, the companies said international fuel prices had risen steadily over the previous eight months, attributing the increases to conflicts in the Middle East and the closure of the Strait of Hormuz.
They also claimed fuel prices had reached record highs, making the tariff adjustment necessary to cover rising operational expenses.
The minister's description of a 10% increase was not accompanied by a breakdown of individual company tariffs. The companies' announced five-cent increase represents a percentage change that depends on the rate previously charged to customers.
The latest increase adds to concerns over electricity affordability in Somalia, where power costs remain a significant expense for households and businesses.
The government's proposed investment and tariff-reduction plans could help address those costs, although the minister did not specify a timeline for achieving the targeted 45% reduction.