Egypt’s recent hikes in fuel prices will not negatively affect food products, said CEO of one of the country’s largest dairy products and juice makers on Tuesday.
During a conference organized by the Egyptian Union for Investors Associations (EUIA), business tycoon Safwan Thabet – CEO of Juhayna Food Industries – asserted that the rise in food products shall not exceed 2%.
Thabet elaborated that leading food companies in Egypt, in their meeting with Prime Minister Ibrahim Mehleb, have pledged to weather the repercussions of the fuel prices hikes for the coming 6 months.
The Egyptian tycoon described the government’s decision to reduce energy subsidies as ‘brave’, saying only the rich will bear the repercussions of the decision, he added. He further asked the government to adopt more decisions that would enable the national economy to overcome its stumble over the last three years.
Egyptian President Abdel-Fattah al-Sisi, raised gasoline prices by as much as 78 percent, saying the measure was needed to save a nation “drowning in debt.” Subsidies consume about 25 percent of state spending in Egypt. The move has already led to increased taxi and minibus fares. It was followed by increases in cigarette and alcohol taxes.
Consequently, this was also followed by concerns over witnessing a similar dramatic rise in food products since petroleum is used in food production as well as the transportation process.
The cabinet raised on Saturday the price of 95-octane petrol to EGP 6.25 from EGP 0.95 per litre, 92-octane petrol to EGP 2.60 per litre, and diesel and kerosene to EGP 1.80 per litre.
