Egyptians are anticipating a new wave of high prices, after the government announced an increase in fuel prices, which is expected to lead to an increase in production costs in various sectors, from agriculture and industry to real estate and construction, which will raise the prices of goods and services by a rate ranging between 2 and 15% according to each sector. According to 15 investors and company presidents polled by Al-Sharq.
Last Friday, Egypt raised fuel prices for the third time this year, to include all types of gasoline, diesel, and industrial diesel, by a rate ranging from 7.7% to 17%, with the aim of reducing the gap between the selling prices of petroleum products and their high production and import costs.
Mustafa El-Nagary, Chairman of the Agriculture and Irrigation Committee of the Egyptian Businessmen Association, said that the rise in fuel prices will increase the cost of agricultural production for all products by an average of 10%, adding that the rise in diesel prices will have an impact on all production inputs that go into the agricultural process, whether in irrigation or Agriculture.
Expect the cost of seed production and labor to rise as a result of recent decisions.
At the industrial sector level, Majd al-Din al-Manzalawi, Chairman of the Industry Committee of the Businessmen Association, said that the price of the industrial product in its final form may increase between 2 and 5% depending on the nature of each product. The increase is calculated from operating expenses, which range from 10 to 15% of the price. The value of the final product depends on the nature of each industrial product.
The government kept the prices of diesel fuel supplied to the electricity and food industries unchanged. While it decided to raise the price of a liter of 80 gasoline (the lowest quality) by 12.2% to 13.75 pounds, and the price of a liter of 92 gasoline by 10.9% to 15.25 pounds, provided that the price of a liter of 95 gasoline, the highest quality, after the increase will reach 17 pounds. It also raised the selling price of a liter of diesel fuel by 17.4% to 13.50 pounds, and the selling price of a liter of kerosene increased by the same percentage and value. The price of diesel directed to factories increased by 11.8% to 9,500 pounds.
For his part, Ahmed Sherine Karim, Head of the Cement Division at the Federation of Egyptian Industries, expected cement prices to rise after increasing the ton of diesel supplied to factories by about 12% to reach 9,500 pounds from 8,500 pounds, indicating that the cost of the actual increase is currently being calculated, considering that the increase in a liter of diesel At two pounds, it will have an impact on prices for supply chains and retailers, adding, “The increase will depend on each governorate and its proximity to factories.”
Hani Barzi, president of the Egyptian food company Edita, said that fuel prices, including electricity, represent 2% of the cost of production, and consequently will raise the cost of production, and the distribution sector will be affected by a large cost due to the increase in gasoline and diesel.
He added: “We will consider raising the prices of our products after the increase in the prices of petroleum products, but it is not possible to say for sure about the increase or predict the rate yet, but we will try to bear the cost of the increase and not pass it on to the consumer due to the recent decline in purchasing power,” attributing this to the inability of consumers to bear new increases in prices. Adding, “Therefore, we may not decide on the increase despite our impact.”
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