Egyptian Cigarette Prices Rise Again, Experts Raise Inflation and Monopoly Concerns

World Corner319 Views

Cairo – Cigarette prices in Egypt have risen again after Eastern Company, one of the country’s largest cigarette producers, announced price increases for several of its popular brands. The hike is raising concerns about inflation amidst a volatile economic situation.

Price Increase List:

  • Kleopatra:
    • King Size, Soft Queen, Box, Super, Black Label, and Motsian Super: up 4.5 جنيه (around $0.25) per pack.
  • Viceroy:
    • Box 10: up 2.5 جنيه (around $0.14) per pack.
  • Kilogram of Tobacco:
    • Up 5 جنيه (around $0.28) per kilogram.

Reasons for the Increase

According to Ibrahim Imbabi, Head of the Tobacco Division at the Egyptian Industries Association, the price hike is due to several factors, including:

  • US Dollar Price Increase: The official US dollar price at banks has increased from around 30.90 جنيه (around $1.70) to over 47 جنيه (around $2.60).
  • Rising Production Costs: The cost of producing cigarettes, such as raw materials and transportation, has also increased.
  • Tax Structure Changes: The Egyptian government has changed the tax structure for cigarettes, resulting in a higher selling price.

The cigarette price hike is raising concerns about inflation in Egypt. Cigarettes are a widely consumed commodity, and a price increase could impact people’s purchasing power.

Expert Reactions

Some economists in Egypt have expressed their concerns about the cigarette price increase. They suggest that the government should take steps to mitigate the impact of this increase on the public, such as:

  • Raising the Minimum Wage: The current minimum wage in Egypt is still low, and the cigarette price hike will further burden low-income earners.
  • Strengthening Social Assistance Programs: The government can expand social assistance programs to help the poor and vulnerable.
  • Increasing Price Monitoring: The government needs to increase price monitoring of cigarettes to prevent hoarding and speculation.

The cigarette price hike in Egypt is a complex issue with various implications. The government needs to take appropriate measures to ensure that this increase does not overburden the public.***

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