The Automatic Pricing Committee for Petroleum Products took a decision to raise the selling price of a liter of diesel by one pound, from 7.25 pounds to 8.25 pounds, an increase equivalent to 14% of its price.
This increase is higher than the maximum quarterly adjustment rate, which amounts to only 10%, which warns that many sectors will be affected, especially food commodities, after the rise in the transportation sector immediately after the price of diesel was raised.
The opinions of specialists among members of the chambers of commerce varied in all sectors related to food commodities about the impact of raising diesel prices on various commodities, especially in light of the approaching Eid al-Adha season.
Hazem Al-Menofi, Head of the Foodstuffs and Grocery Division at the Alexandria Chamber of Commerce, confirmed that raising the price of diesel by one pound will not significantly affect the prices of food commodities in the markets, pointing out that the mechanism of supply and demand is what controls prices, but there are other practices that lead to Unjustified height.
He added, in exclusive statements to “People of Egypt”, that each company decides whether or not to raise the price of its product, according to market studies and the extent of its impact. However, some companies will prefer to keep their own market shares, rather than raise the prices of some of their products.
In turn, Hatem Al-Najeeb, Deputy Head of the Vegetables and Fruits Division, expressed his support for the previous opinion, stressing that the effect of raising the price of diesel by one pound will have a slight effect, and he also pointed out that the main factor in increasing prices for agricultural products is production.
He pointed out that the effect of raising the price of a liter of diesel by one pound will be reflected in the price of a kilogram of food commodities with simple piasters, not exceeding 15 piasters, which means that the impact will be very slight, with regard to the transportation of agricultural products.
On the other hand, Mohamed Rihan, deputy head of the butchers division, confirmed that the increase in the price of diesel will lead to an increase in the price of meat, because most of the transport fleets use diesel as their fuel, and thus their cost will rise.--
He added that the time was early, with regard to taking the decision to raise, especially since the market is suffering from stagnation, as a result of the high prices resulting from an exaggerated increase in the price of fodder, as well as the approaching Eid al-Adha season, with which an automatic price increase is expected.
He pointed out that the price of a kilogram of kandouz and veal ranges between 320 and 350 pounds, depending on the region, stressing that it is too early to determine the size of the increase that may occur in the price of sacrificial meat.
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In the meantime, Ahmed Nabil, Vice President of the Table Eggs Division, confirmed that the rise in the price of diesel will affect the price of table eggs and push it to rise as a result of the introduction of diesel as a basic element in the inputs of its industry, and the poultry industry in general.
He added, in exclusive statements to “Ahl Masr”: “The high price of diesel will not only affect the transportation sector, but will also increase the cost of packaging and heating in farms where diesel generators are used.
Live in safety
As for Khaled Sabry, secretary of the Bakeries Division at the Cairo Chamber of Commerce, he confirmed that raising the price of diesel has no effect on ration bakeries, because they are subject to the regulations of the Ministry of Supply, which bears the differences in the price of diesel within the cost of producing subsidized bread, so that the price of a loaf of bread for ration cards remains fixed at 5 piasters. The ministry also pumps the differences daily to bakery owners, and therefore the ration bread will not be affected.
He added, in exclusive statements to “People of Egypt”, that there is no justification for raising the prices of tourist bread, after increasing the price of diesel, in light of the fact that 90% of tourist bakeries run on gas, not diesel.
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