Egypt's Suez Canal announces hike in passage tolls

CAIRO — Egypt's Suez Canal Authority (SCA) announced on Tuesday additional tolls for transiting vessels including fuel tankers, as oil prices soar in the wake of Russia's invasion of Ukraine.

Petroleum gas tankers will see a 10 per cent hike on passage fees while liquefied natural gas carriers and general cargo ships will incur a seven per cent increase, an SCA statement said.

Ships carrying petroleum products will be hit with a 5 per cent rise under the new tolls, which are effective immediately.

A 6 per cent fee hike had already come into effect earlier this year, though cruise ships and liquefied natural gas carriers were exempt.

SCA chief Osama Rabie said the new fees would be evaluated and could be readjusted.

The vital waterway connecting the Mediterranean and the Red Sea provides passage for around 10 per cent of all global maritime trade and is one of Egypt's main sources of foreign currency revenues.

In 2021, some 1.27 billion tons of cargo were shipped through the canal, earning $6.3 billion dollars in transit fees, 13 per cent more than the previous year and the highest figures ever recorded, Rabie said in January.

The conflict in Ukraine has caused a surge in oil prices amid concerns that Russian energy supplies could be curtailed.