Monday, 25 May 2026
Sisi defends fuel price hike, urges transparency as regional wars hit economy
Egyptian President Abdel Fattah al-Sisi on Saturday defended recent fuel price increases and urged greater government transparency, saying regional wars and supply disruptions had added to pressure on the country’s economy.
Sisi was speaking at the annual “Egyptian Family Iftar” held at the Air Force House in Cairo, the presidency said in a statement.
In his address, Sisi said the region was at a “historic crossroads”, citing fast-moving challenges and an “exceptionally sensitive” period. He said Egypt was working to contain escalation in the Gulf and to reduce tensions in other Arab countries facing armed conflict to Egypt’s east, west and south.
Egypt reiterated its condemnation of attacks on “sister Arab states” and called for de-escalation, dialogue and adherence to international and humanitarian law, he said.
Sisi said the conflicts had disrupted global supply chains and pushed up energy and food prices worldwide, with knock-on effects for Egypt. He added that wars in Gaza and Iran had contributed to the pressures, prompting the government to take what he described as necessary economic steps to ensure the availability of strategic commodities and protect economic stability.
Addressing discontent over higher fuel prices, Sisi said the state understood the burden on citizens but at times had to take “difficult” measures to avoid worse outcomes. He said the government did not take decisions unless they were carefully studied and intended to be the least costly option for the public.
He also referenced criticism in the press that the government was not candid with citizens and was failing to deliver on promises. Sisi said not everything the state hoped to do could be implemented, adding that Egypt was not responsible for the crises of the past five years and had instead absorbed the impact of conflicts while trying to meet the needs of a population he put at 120 million.
Sisi said Egypt began an economic reform programme in 2016, but from 2020 onwards faced a series of shocks that were difficult to avoid. He said Egypt had lost around $10 billion in Suez Canal revenues — which he said was equivalent to about 500 billion Egyptian pounds — undermining the state’s capacity to respond.
He called on the government and relevant agencies to provide clearer explanations to the public, “to ensure transparency”, particularly for influential voices in society.
Sisi said petroleum products were consumed not only by private cars but also, in much larger volumes, by power generation. He put Egypt’s annual consumption of petroleum products at around $20 billion, or about 1 trillion Egyptian pounds, and said the state was expanding new and renewable energy, targeting 42% of generation by 2030 and seeking to exceed that level ahead of schedule.
He said requiring consumers to pay the full cost of energy would lead to electricity bills quadrupling compared with current levels, without generating profits for the state.
Sisi said Egypt could not continue borrowing foreign currency to cover energy needs, warning that doing so would create a cycle of rising debt unless “decisive” steps were taken. At the same time, he said the state was trying to avoid raising prices of basic goods and was monitoring markets to prevent exploitation.
He instructed the government to act firmly against price gouging and said violators should be referred for prosecution, reiterating that he had previously said offenders could be sent to military trial.
Sisi said the government would continue providing subsidised goods to the most vulnerable families within available resources, and directed it to speed up the launch of a new social package aimed at low-income and middle-income groups.
He also touched on television and drama content, saying there had been some “positive progress” this year and calling for more work that reflects Egyptian values and contributes to what he described as building national consciousness.
Sisi urged Egyptians to remain united amid regional turbulence, saying some countries had been lost due to “miscalculations,” and said Egypt remained stable without needing to impose consumption limits or resort to power cuts.
The iftar event was held ahead of the Eid al-Fitr holiday, the presidency statement said.
The event was attended by senior officials including House Speaker Hisham Badawy, Senate Speaker Essam El-Din Farid, Prime Minister Mostafa Madbouly, Coptic Orthodox Pope Tawadros II, Deputy Prime Minister for Economic Affairs Hussein Eissa and Defence Minister and Armed Forces Commander-in-Chief Ashraf Salem Zahir, as well as ministers and public representatives.