Egypt increases the prices of 3 brands of cigarettes by up to 17.6%
CAIRO – July 12, 2017: Eastern Company increased the price of three brands of cigarettes by 4.2-17.6% (LE 0.50 – LE 2.25, $ 0.028 – $ 0.126) on Wednesday, the company said .
The prices have been increased as follows: Cleopatra King Size from LE 10.50 to LE 11.50, Cleopatra Queen soft pack from LE 12 to LE 12.50 and Cleopatra Super from LE 12.75 to 15 LE.
The three brands are the most popular among the low income class in Egypt.
The company has raised prices to curb rising production costs, Eastern Co chairman Mohamed Othman Haroun told Reuters by telephone.
Haroun added that the prices of paper packages were increased amid the decrease in imported inventory to LE 9 per US dollar, while production necessities were imported at LE 18 per US dollar.
The president noted that the price increase is within the framework of the current law and that there are 11 brands whose prices are still unchanged, adding that the increased prices are always lower than the selling prices in the market.
The move comes days after the government announced further increases in fuel and electricity prices, in addition to the latest interest rate hike.
In December 2016, the price of Merit, Marlboro and LM cigarettes increased by 10%, to 20 LE per cartridge and 2 LE per pack, reported the Al-Borsa News website.
Additionally, the Egyptian Smoke Cigarette Division of the Federation of Egyptian Industries officially increased cigarette prices in September 2016, two days after the new law on value added tax was implemented.
According to the CAPMAS 2015 survey linking smoking to income, expenditure and consumption, 41.2 percent of employers smoke, and the average annual expenditure of an Egyptian household for smoking is LE 1,722 (95.14 $).