Egypt’s Sisi says Suez Canal revenue fell $10bn due to regional instability

2026-03-14 - 23:33

Egyptian President Abdel Fattah al-Sisi said on Sunday that regional conflicts have caused a $10bn loss in Suez Canal revenues, describing recent domestic fuel price increases as an “inevitable” measure to protect the national economy. Speaking at the “Egyptian Family Iftar” in Cairo, Sisi stated that the EGP 500bn decline in Suez Canal receipts, combined with global supply chain disruptions and rising energy costs from conflicts in Gaza and Iran, has placed Egypt at a “historical crossroads.” He defended the government’s decision to raise petroleum prices, acknowledging public “negative feelings” but insisting the measures were necessary to avoid “harsher options.” “The state is fully aware of the scale of the pressures borne by the Egyptian citizen,” Sisi said. He explained that the country consumes approximately $20bn (EGP 1tn) of petroleum products annually, the majority of which is used to fuel power plants. If the government charged citizens the true cost of production, electricity bills would increase fourfold, the President added. In response to domestic economic strain, Sisi directed the government to accelerate the launch of a new social protection package targeting low- and middle-income groups. He emphasised that while the state remains committed to subsidising goods for the most vulnerable, it cannot continue borrowing foreign currency to cover consumption needs for a population that has reached 120m. The President also addressed media criticism regarding government transparency. He urged officials to provide clearer explanations to the public, particularly regarding economic decisions. “We do not take any measure unless it is carefully studied,” Sisi said, noting that current policies are designed to be the “least costly” for the population. On energy policy, Sisi announced that Egypt is working to reach a target of 42% renewable energy by 2030, with intentions to exceed this percentage and complete the transition ahead of schedule. Regarding internal security and market stability, the President warned against price gouging and exploitation. He stated that the government would strictly monitor markets and that violators could be referred to military trials to ensure the protection of the people’s resources. Sisi also noted “positive progress” in recent television dramas and artistic works, calling for content that reflects Egypt’s cultural values and contributes to national awareness. The event was attended by Prime Minister Mostafa Madbouly, Deputy Prime Minister for Economic Affairs Hussein Issa, Minister of Defence and Military Production Ashraf Salem Zaher, Speaker of the House Hesham Badawy, Senate President Essam el-Din Farid, and Pope Tawadros II. Presidential spokesperson Mohamed El-Shennawy confirmed that the President’s remarks focused on the necessity of national cohesion during a period of regional volatility, warning that “some countries are lost due to wrong calculations.”